SOLUTION: Find the present value. Round to the nearest cent. To get $10,000 after 2 years at 18% compounded monthly. Possible answers: a. $5000.00 b. $6995.44 c. $8363.8

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Find the present value. Round to the nearest cent. To get $10,000 after 2 years at 18% compounded monthly. Possible answers: a. $5000.00 b. $6995.44 c. $8363.8      Log On

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Question 1046481: Find the present value. Round to the nearest cent.
To get $10,000 after 2 years at 18% compounded monthly.
Possible answers:
a. $5000.00
b. $6995.44
c. $8363.87
d. $11,956.18
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
P=A/(1+p/n)^nt
P=10000/(1+0.18/12)^12*2
P=10000/(1.015)^24
P=10000/1.4295
P=$6995.44 (b)