Find the present value of $20,000 due in 5 years at the given rate of interest. (Round your answers to the nearest cent.) (a) 8%/year compounded monthly $ (b) 9%/year compounded daily $

          Find the present value of $20,000 due in 5 years at the given rate of interest. (Round your answers to the nearest cent.)
(a) 8%/year compounded monthly
$
(b) 9%/year compounded daily
$

Added by Kristen F.

Precalculus with Limits

Ron Larson 2nd Edition

Instant Answer

Solved by Expert Tim Thornhill

05/01/2023

Step 1

(a) For 8% per year compounded monthly, we have: r = 0.08 n = 12 t = 1 Plugging these values into the formula, we get: PV = 20000 / (1 + 0.08/12)^(12*1) PV = 20000 / (1.00666667)^12 PV = 20000 / 1.08301392 PV = 18469.33 So, the present value for 8% per Show more…

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