1 2 3 4 5 thanks in advance Find the principal needed now t

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thanks in advance ,

Find the principal needed now to get the given amount that is, find the present value. To get $400 after 3 years at 7% compounded monthly The present value of $400 is (Round to the nearest cent as needed.)

Solution

1. Amt = principal(1 i i)^n

i = 0.07/12 = 0.00583 ;n= 3*12 = 36

400= P(1 +0.00583)^36

P = 400/1.2329 = 324.4383 = $324.44

2. rate = 7(1/4) = 29/2% = 14.5%

i = 14.5/4*100 = 0.03625

3. A = 2P

2P = P ( 1 +i)^16

2 = (1+i)^16

taking log on both sides:

ln2 = 16 ln(1+i)

0.0433 = ln(1+i)

1+i = 1.044

i = 0.044

i = 4.4%