SOLUTION: Hello Tutors, This is a homework question I cannot seem to figure out. Find the PRESENT VALUE (P). Round your answer at the very end. If you round before you get to the final an

Algebra ->  Polynomials-and-rational-expressions -> SOLUTION: Hello Tutors, This is a homework question I cannot seem to figure out. Find the PRESENT VALUE (P). Round your answer at the very end. If you round before you get to the final an      Log On


   



Question 1018866: Hello Tutors,
This is a homework question I cannot seem to figure out. Find the PRESENT VALUE (P). Round your answer at the very end. If you round before you get to the final answer, there is a good chance you will encounter a rounding error. Be sure to show all steps in your work and describe what your answer means.
b. Also find how much you would have to invest initially if you only save for half the number of years given in your problem.
A = 15,000, r = .06, n = 17

Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
A=P%281%2Bi%29%5En
15000=P%281.06%29%5E17
P=15000%2F%281.06%29%5E17
P=5570.47
.
.
.
Half the number of years? You have an odd number of years.
8 years,
15000=P%281.06%29%5E8
P=15000%2F1.06%5E8
P=9411.19
9 years,
15000=P%281.06%29%5E9
P=15000%2F1.06%5E9
P=8878.48