Question

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.

Answer 1

P = 50000(1.08)^-20
= ......

On your calculator
enter 50000 x 1.08 Y^X 20 ± =
to get 10,727.41

Answer 2

122222