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Using provided data, solve for present value. When calculating 1/(1+I/Y)^N, round your answer to four decimal places. Use your rounded answer to calculate PV; enter
Using provided data, solve for present value. When calculating 1/(1+I/Y)^N, round your answer to four decimal places. Use your rounded answer to calculate PV; enter PV rounded to the nearest dollar. When entering (1+I/Y) into the formula, be sure to solve for (1+I/Y) and then enter the result rounded to two decimal places.
Facts | |
PV: | |
FV: | $140,000 |
Annual Interest Rate: | 12% |
I/Y: | 1% |
n: (Number of years) | 5 |
N: (Number of compounding periods) | 60 |
Compounded (Y): | Monthly |
Formula Method | ||||||
---|---|---|---|---|---|---|
PV | = | FV | X | 1/ | (1+I/Y) | ^N |
= | X | 1/ | ||||
= | X | |||||
= |
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