en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular >

Find the principal needed now to get the given amount; that is, find the present value.To get 500 after 2 years at 5% compounded monthly

Solution

Find the principal needed now to get the given amount; that is, find the present value.To get 500 after 2 years at 5% compounded monthly

Solution

Principal : 452.51

Solution steps

Translate the problem into an equation:

500 = P (1 + \frac{0.05}{12})^{12 \cdot 2}

Solve for

P, 500 = P (1 + \frac{0.05}{12})^{12 \cdot 2} : P = 452.51

Principal : 452.51

Popular Examples

If 3/11 of a number is 22 , what is 6/11 of that number?If Josh invests 500 in a 5-year fixed interest savings bond that pays 5% per annum, how much will his entire investment be worth at the end of the term?What is the probability of getting 6 heads when you flip a coin nine times?Suppose you deposit 2, 000 in a savings account that pays interest at an annual rate of 6%. If no money is added or withdrawn from the account, how much will be in the account after 3 years?calculate the radius of a sphere that has a volume of 248398.88