Posted by **Amanda** on Sunday, November 25, 2012 at 1:01am.

Find the present value of $31,000 due in 4 yr at the given rate of interest.

(a) 6%/year, compounded quarterly

$ ?

(b) 3%/year, compounded quarterly

$ ?

- math -
**Henry**, Monday, November 26, 2012 at 8:39pm
a. P = Po(1+r)^n.

P = $31,000. = Value in 4 yrs.

Po = Initial value.

r = (6%/4) / 100% = 0.015 = Quarterly %

rate expressed as a decimal.

n = 4Comp./yr * 4yrs = 16 Compounding

periods.

P = Po(1.015)^16 = $31,000.

Po*1.26899 = 31000

Po = $24,428.96 = Present value.

b. Same procedure as "a".

## Answer this Question

## Related Questions

- math - Find the present value of $31,000 due in 4 yr at the given rate of ...
- math - Find the present value of $31,000 due in 4 yr at the given rate of ...
- Fins nance business - 1. Find the future value of current $1,000 5 year from ...
- finite math - Find the present value of an ordinary annuity of $600 payments ...
- algebra - Find the accumulated value of an investment of $10,000 for 3 years at ...
- Math - Find the effective rate corresponding to the given nominal rate. (Round ...
- Math - Find the effective rate corresponding to the given nominal rate. (Round ...
- Math - Compound - If a bank offers interest at a nominal rate of 6%, how much ...
- Calc - Find the present value of $14000 due in 9 years at the given rate of ...
- finances - Calculate the future value of the following: o $5,000 compounded ...

More Related Questions