Asked by Don

The present value P that will amount to A dollars in n years with interest compounded annually at annual interest rate r, is given by P = A (1 + r) -^n. Find the present value that will amount to $50,000 in 20 years at 8% compounded annually.

Answers

Answered by Reiny
P = 50000(1.08)^-20
= ......

On your calculator
enter 50000 x 1.08 Y<sup>X</sup> 20 ± =
to get 10,727.41
Answered by Anonymous
122222
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