The present value that must be invested to get $1,000 after 6 years at the interest rate of 11.5% is $ round up to the nearest cent

Question

Deshawn Golden

Mathematics

20 February, 01:54

The present value that must be invested to get $1,000 after 6 years at the interest rate of 11.5% is $ round up to the nearest cent

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Answers (1)

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Joey · Answer 1

The future worth (F) of the current investment (P) given that the interest (i) is compounded can be calculated by the formula,

F = P x (1 + i) ^n

where n is the number of years. Substituting the given values to solve for P,

1000 = P x (1 + 0.115) ^6

The value of P is approximately $520.42.