Question

a bank offers to pay 500000Rs after 8 years if interest rate is 9 %compounded annually then value of money to be paid to bank today will be​

Answer 1

Answer:

Answer:

P = $ 250,933.14

Calculation Steps:

First, convert R percent to r a decimal

r = R/100

r = 9%/100

r = 0.09 per year,

Then, solve our equation for P

P = A / (1 + r/n)^(nt)

P = 500,000.00 / (1 + 0.09/1)^((1)(8))

P = $ 250,933.14

Summary:

The principal investment required to get

a total amount of $ 500,000.00 from compound interest at a rate of 9% per year compounded 1 times per year over 8 years is $ 250,933.14.