SOLUTION: I have the present value formula. p=A (1+r)n p=5000 (1+4.07) p=5000 (1.05)5 p= 5000 over 1.09 5 the negative exponrient p=5000 I got stuck after that.

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Question 771339: I have the present value formula. p=A (1+r)n
p=5000 (1+4.07)
p=5000 (1.05)5
p= 5000 over 1.09 5 the negative exponrient
p=5000
I got stuck after that.
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
p=A%2F%281%2Br%29%5En.........the present value formula
p=5000+%2F%281%2B4.07%29%5E5
p=5000%2F%281.05%29%5E5
p=+5000%2F1.28......here you can divide +5000 by 1.28, or multiply +5000 by 1.28%5E-1=1%2F1.28=0.78125
p=+5000%2F1.28=3906.25 or p=+5000%2A0.78125=3906.25