Question

To get $700 after 4 years at 3% compounded monthly the present value of $700 is $

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\ 700\\ r=rate\to 3\%\to \frac{3}{100}\to &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\to &12\\ t=years\to &4 \end{cases} \\\\\\ A=700\left(1+\frac{0.03}{12}\right)^{12\cdot 4}\implies A=700(1.0025)^{48}$