Question 565086
Find the present value that will give a future value of $9,280 at 9.75 % compounded monthly for 2 years and 3 months.
<pre>
A = P(1 + {{{r/n}}})<sup>nt</sup>

where 

A stands for the finAl amount
P stands for the the Previous Principle, The Peginning amount :)
r stands for the rate expressed as a decimal.
n represents the number of times per year the interest is compounded.
t represents the time in years.

A = 9280
P = ?
r = .0975
n = 12  
t = {{{2&3/12}}} = 2.25

A = P(1 + {{{r/n}}})<sup>nt</sup>
9280 = P(1 + {{{.0975/12}}})<sup>12·2.25</sup>

9280 = P(1 + .0079166667)<sup>27</sup>
9280 = P(1.007916667)<sup>27</sup>
9280 = P(1.237271244)

Divide both sides by 1.237271244

{{{9280/1.237271244}}} = 7500.376369

Answer: $7500.38

Edwin</pre>