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Find the present value of 5000 if the innterest paid is at a rate of percent 7 compounded continuosly for 4 years?
Wiki User
∙ 13y ago
The formula to calculate the present amount including compound interest is A = P(1 + r/n)nt where P is the principal amount, r is the annual rate expressed as a decimal , t is the number of years, and n is number of times per year that interest is compounded.
In the question, P = 5000, r = 0.07, t = 4, and n = 1
A = 5000(1 + 0.07)4 = 5000 x 1.074 = 5000 x 1.310796 = 6553.98
Wiki User
∙ 13y ago
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3400*108.9%=3702.603702.60*108.9%=4032.134390.994781.795207.375670.826175.536725.157323.697975.508685.329458.3110300.1011216.8112215.1013302.2514486.1515775.4117179.4318708.39...60. 563,037.12
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