<PRE><B>Question 150359</B>
The previous question (present value) P=A(1+r)^-n the present value P that will amount to A dollars in n years with interest compounded annually at an anual interest rate r, is given by P=A(1+r)^-n
Find the present value that will amount to $50,000 in 20 years at 8% compounded annually.
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P = 50000(1+0.08)^(-20)
P = 50000(1.08)^(-20)
P = $10727.41
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Cheers,
Stan H.
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