Homework Help: math

Posted by Eloisa on Monday, July 27, 2009 at 5:16pm.

Present Value

suppose your bank account will be worth $7000 in one year. The interest rate (discount rate) that the bank pays is 8%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 3%

math - drwls, Monday, July 27, 2009 at 10:51pm
For the first part of your question,let X be the present value. Then solve
1.08X = 7000
for X

For the second part, solve
1.03X = 7000

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