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Beliebt Word Problems >

what is the present value of5000 pesos due in 8 years if the money is worth 12% compounded semiannually

Lösung

w ha t i s t h e p rese n t v a l u e o f 5000 p esos d u e in 8 ye a rs i f t h e m o n ey i s w or t h 12% co m p o u n d e d se miann u a ll y

Lösung

Amount : 12701.76

Schritte zur Lösung

Translate the problem into an equation:

A = 5000 (1 + \frac{0.12}{2})^{2 \cdot 8}

5000 (1 + \frac{0.12}{2})^{2 \cdot 8} = 12701.75842 \dots

Round to the nearest hundredth:

12701.76

Amount : 12701.76

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