How do you find the present value that will grow to $30,000 if interest is 6% compounded quarterly for 11 quarters?

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How do you find the present value that will grow to $30,000 if interest is 6% compounded quarterly for 11 quarters?

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Answer 1 · 2016-11-23T12:01:29

Present value is $$ 25468$ $$25468$

Explanation:

$F V = $ 30000, R =$ $FV=$30000 , R=$ 6/400=0.015 T= 11 ; PV= ?#

Formula: $F V = P V {(1 + R)}^{T} or P V = \frac{F V}{{(1 + R)}^{T}} = \frac{30000}{{(1 + 0.015)}^{11}} = \frac{30000}{{1.015}^{11}} = 25468$ $FV=PV(1+R)^T or PV= (FV)/(1+R)^T = 30000/(1+0.015)^11 =30000/1.015^11=25468$

Therefore present value is $$ 25468$ $$25468$ [Ans]

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How do you find the present value that will grow to $30,000 if interest is 6% compounded quarterly for 11 quarters?

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