Problema Solution

Find the present value of 1,400,000 if interest is paid at a rate of 7.7% compounded monthly for 10 years. The present value is $__. Round to the nearest cent as needed.

Answer provided by our tutors

Present value = FV / (1+r)^n = 1400000/1.00641667^120 = 1400000/2.1539463 = $649970