Find the present value, using the present value formula to achieve $3,500 in five years at 7.2% interest compounded monthly
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Step 1
When interest is compounded monthly, the formula for the present value is: \[ PV = \frac{FV}{(1 + \frac{r}{n})^{nt}} \] where: - \( PV \) is the present value - \( FV \) is the future value (the amount of money we're trying to achieve in the future) - \( r \) is Show more…
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