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Use A=P(1+r)"
Calculate the present value, to the nearest dollar, with a future value of $8200, interest rate
at 4% p.a. compounded quarterly for 8 years

Respuesta :

amna04352

Answer:

$5964

Step-by-step explanation:

4% per annum

1% per quarter (4 quarters in a year)

So r = 1% = 0.01

8 years = 8×4 = 32 quarters

8200 = P×(1+0.01)^32

P = 8200/[(1+0.01)^32]

P = 5963.893663

P = $5964 (nearest dollar)