Mathematics
mzphatbooty0569
10

What is the present value of an investment that will pay you $97,000 in four years. assume the appropriate discount rate is 7.75 percent compounded daily?

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(1) Answers
joycesouza

Total = Principal * (1 + (rate/n))^n*years where "n" is the number of compounding periods per year (in this case it is 365) Total = 97,000 * (1.0002123288)^365*4 Total = 97,000 * (1.0002123288)^1,460 =132,247.89 Source: Compound Interest Formulas: http://www.1728.org/compint3.htm

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