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3 years ago

What's the present value of $11,000 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually?

Mathematics

1 answer:

kotegsom [21]3 years ago

7 0

Answer:

Step-by-step explanation:

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

Look the formula up online to find out what each variable represents if needed.

We are solving for P, which is the principal amount 5 years back.

Substitute 11,000 for A (total amount), 4.5% for r(rate), 2 for n(number of times -- in this case, semiannually), and 5 for t(time -- 5 years).

11000 = P[1+(0.045/2)]^(2x5)

11000 = P (1.0225)^10

11000 = P (1.2492) approx.

Divide both sides by 1.2492 to find P.

P = $8805.64 (approx)

I know that the answer I got is not an option listed. However, I feel that my workings may help other people to answer this question or give them inspiration to answer similar questions. Therefore, I will leave this answer up.

Thanks, and sorry I couldn't do much.

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Answer:

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Step-by-step explanation:

Given the length 7, 10, and 12, we can assume that 12 is the hypotenuse (it is the longest length).

- we can use 7 and 10 interchangeably.

Fill in the equation, $a^2 + b^2 = c^2$

where c = 12, and a or b = 7 or 10.

To indicate if the given lengths would form a right angle, we can only input 7 or 10, not both.

Therefore, $7^2 + b^2 = 12^2$ or $10^2 + b^2 = 12^2$

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