SOLUTION: Calculate the present value of $100,000 payable in 25 years at 2.4% interest compounded monthly

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Calculate the present value of $100,000 payable in 25 years at 2.4% interest compounded monthly      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1139580: Calculate the present value of $100,000 payable in 25 years at 2.4% interest compounded monthly
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A+=+A%5B0%5D%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+
+100000+=+A%5B0%5D%2A%28+1+%2B+.024%2F12+%29%5E%2812%2A25%29+
+100000+=+A%5B0%5D%2A1.002%5E300+
+100000+=+A%5B0%5D%2A1.8210273+
+A%5B0%5D+=+54914.06+
The present value is $54,914.06
------------------------------------
check:
+54914.06%2A1.8210273+=+99999.99936+
error due to rounding off
OK