Example Solving Compound Interest Word Problems : Find Present Value given Future Value, Interest rate, Time Period and Compounding.
See Other Compound Interest Word Problem Examples solved by the Algebra Word Problem Solver.| Find the present value of $1347.89 in 3.5 years, 6.77% compounded semiannually. |
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Let A = Future Value Let P = Present Value Let r = Rate Let t = Time Let n = Interest periods per year Given: A = $1347.89 Given: r = 6.77% Given: n = 2 Given: T = 3.5 YEARS -nt
P = A(1+r/n)
-2*3.5
P = 1347.89(1+0.0677/2)
-7
P = 1347.89(1+0.03385)
P = $1,067.71P = $1,067.71 |