You will have 3 x’s left because 5-2=3
A(t) = P(1+(r/n))^(nt)
A(3) = 500(1+0.04/1))^(1*3)
A(3) = 500(1.04)^3
A(3) = $562.43
Answer:
I think it's 2.56
you convert the 8 percent to a decimal and then you times it to 3.20
3.20×.8=2.56 (it's wrong)
Answer:
The correct option is B,N-240;1% = 5.6; PV=-205000; PMT=;FV=0;P/Y=12; C/Y=12;
PMT: END
Step-by-step explanation:
The compounding is done monthly which is means that the number of periods for which the compounding is carried is the number of months in twenty years,which is 20*12=240
Only options B and C have N as 240.
The present worth of the loan ,which is the amount of loan is $205,000
Option B has PV=-$205,000
Option C has PV =$0
Ultimately option B which stated the loan amount correctly is the right answer.
Also,the future value of the loan is unknown,hence option B has it as $0-unknown while option C stated it as -$205,000,which effectively means that the PV was used as FV
