If f(x) = 2x squared + 5

Solved

Show answers

Ответ:

monicagalarza

09.09.2021

Mathematics

To solve this we are going to use the formula for a future value: $FV=PV(1+ \frac{r}{n} )^{nt}$
where

is the future value

is the present value

is the interest rate in decimal form

is the number of times the interest is compounded per year

is the time in years

Since the amount needed is $42,000, FV=42000

. We also know for our problem that t=8

and $r= \frac{3}{100} =0.03$ . Since the interest is compounded semiannually, it is compounded two times per year; therefore, n=2

. Lets replace those values in our formula and solve for

:
$FV=PV(1+ \frac{r}{n} )^{nt}$
$42000=PV(1+ \frac{0.03}{2})^{(2)(8)}$
$PV= \frac{42000}{(1+ \frac{0.03}{2})^{(2)(8)}}$
PV=33097.30

We can conclude that the present value needed to make $42000 after 8 years according to your given choices is $33,097.26

0,0(0 оценок)

Ask your question to the AI advisor

Ai-bot is an expert in any field and is the perfect companion for reliable and useful answers and advice on a variety of topics, including science, history, technology, art, sports, health, culture and more.

Ask your question

More tips

Answers on questions: Mathematics

Ask an AI advisor a question

I want advice