Question

Find the present value of 20,000 due 9month hence at 5% per annum compound interest solution

Answer 1

P is 20000

T is 9months = 9/12=3/4

R is 5%

A = 20000 X (1+(5/400))⁴*¾(quarterly)

= 20000 X 405/400 X 405/400 X 405/400

= 20,759.414063