Thread: present value

1. Calculate the present value for each section using compound interest. A) You need $1,000 in 8 years. You can invest your money at 3%/a compounded semiannually.
   B) You need $200 in 30 months. You can invest your money at 6%/a compounded monthly.
   C) You need $15,000 in 12.5 years. You can invest your money at 4%/a compounded quarterly.

Originally Posted by euclid2

1. Calculate the present value for each section using compound interest. A) You need $1,000 in 8 years. You can invest your money at 3%/a compounded semiannually.

A) Future value, F = $1000

interest,

number of interest periods,

Present value, P = ?

Future value,

Present value,



Now, finish up.

Originally Posted by euclid2

1. Calculate the present value for each section using compound interest.
   B) You need $200 in 30 months. You can invest your money at 6%/a compounded monthly.

B) Future value, F = $200

interest,

number of interest periods,

Present value, P = ?

Future value,

Present value,



Now, finish up.

Originally Posted by euclid2

1. Calculate the present value for each section using compound interest.
   C) You need $15,000 in 12.5 years. You can invest your money at 4%/a compounded quarterly.

C) Future value, F = $15,000

interest,

number of interest periods,

Present value, P = ?

Future value,

Present value,



Now, finish up.