Asked by Scott

$2700 left in an account paying 4% interest would be worth how much today?

Answers

Answered by Damon
Scott, you are not giving us anything like the information required for this problem or the other one.
Compound interest?
How often? (monthly, continuous, quarterly)
How long?

In your earlier problem you gave us no idea what the interest rate was or how often it was compounded. Are you making these problems up yourself?
Answered by Scott
It is not a school question. It is a real life question.
So let's assume the interest averaged 4 % compounded daily over the 27 years.
Answered by Damon
future value = present value e^yr
where y = 27 years
r = .04 yearly interest rate
e^1.08 = 2.945
so
2700 * 2.945 = 7950.63
Answered by Damon
calculator here:

http://www.moneychimp.com/articles/finworks/continuous_compounding.htm
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