SOLUTION: find the present value of an investment if the future value is $9,243.87 and the investment earns 7.0% apr for 7 years compounded weekly a. $6,669.37 b. $5,664.91 c. $5,756.6

Algebra ->  Trigonometry-basics -> SOLUTION: find the present value of an investment if the future value is $9,243.87 and the investment earns 7.0% apr for 7 years compounded weekly a. $6,669.37 b. $5,664.91 c. $5,756.6      Log On


   

Question 1153424: find the present value of an investment if the future value is $9,243.87 and the investment earns 7.0% apr for 7 years compounded weekly
a. $6,669.37
b. $5,664.91
c. $5,756.62
d. $15,083.95
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
Compound Interest Formula
FV+=+PV%281%2Br%2Fn%29%5E%28Yn%29
where
PV= is the present value
r=0.07 (is the annual interest rate),
Y=7 is the number of years invested
n+=52 is the number of compounding periods per year.
FV=+9243.87 is the future value, meaning the amount the principal grows to after 7 years
FV=PV%281%2Br%2Fn%29%5E%28Yn%29
9243.87=P%281%2B0.07%2F52%29%5E%287%2A52%29
9243.87=PV%281.001346%29%5E%28364%29
9243.87=PV%281.631687%29
PV=9243.87%2F1.631777027349066%29

PV=5665

answer: b. $5664.91 rounded it's 5665