SOLUTION: How do I salve this type of question:
The present value of a sum of money is the amount that must be invested now, at a given rate of interest, to produce the desired sum at a la
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The present value of a sum of money is the amount that must be invested now, at a given rate of interest, to produce the desired sum at a la
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Question 947458: How do I salve this type of question:
The present value of a sum of money is the amount that must be invested now, at a given rate of interest, to produce the desired sum at a later date.
Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded weekly, for 5 years. (Round your answer to the nearest cent.) Answer by ankor@dixie-net.com(22740) (Show Source):
You can put this solution on YOUR website! Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded weekly, for 5 years.
:
The compound interest formula:
In this problem
A = accumulated amt after t yrs
P = initial amt, 10000
r = interest rate in decimal form: .09
n = compounding times per yr, weekly means it will be 52
t = no. of yrs 5
:
use your calc here
A = 10000 * 1.5677026
A = $15,677.03
