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

1 Answer
Binayaka C.
Nov 23, 2016

Present value is #$25468#

Explanation:

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

Formula: #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# [Ans]

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