Problema Solution
Find the present value of $40,000 due in 6 yr at the given rate of interest. (Round your answer to the nearest cent.)
7%/year compounded quarterly
Answer provided by our tutors
A=P(1+r/q)^nq.
40000=P(1+0.07/4)^6*4.
40000=P*(1.0175)^24.
P=40000/1.51644.
P=$26377.52.