/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q. 20 Find the principal needed now to... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 5: Q. 20 (page 324)

Find the principal needed now to get each amount; that is, find the present value to get $300 after 4 years at 3% compounded daily

Short Answer

Expert verified

The answer is $266.07

Step by step solution

01

Step 1. Given information 

The amount, A=$300

The rate of interest, r=3%=3100=0.03

The time period, t=4

The investment compounded daily,n=365

02

Step 2. Use Present value formulas

The present value P of A dollars received after t years, assuming a per annum interest rate r compounded n times per year, isP=A1+rn-nt

03

Step 3. Calculation

Substitute the values in the Present value formula,

P=$3001+0.03365-365脳4P=$3001.000082-1460P=$30011.0000821460P=$3000.999911460P=$3000.88692P=$266.07

The Present value, P=$266.07

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Height and Head Circumference. The head circumference

C of a child is related to the height H of the child (both in inches) through the function H(C)=2.15C-10.53

(a) Express the head circumference C as a function of height H.

(b) Verify that C=CHis the inverse of H=H(C)by showing that H(C(H))=Hand C(H(C))=C.

(c) Predict the head circumference of a child who is26 inches tall.

The graphs ofy=a-x and y=1axare identical. Why?

True or False. The domain of the composite functionf鈭�gxis the same as the domain ofg(x).

Begin with the graph of y=exand use transformation to graph the function. Determine the domain, range and horizontal asymptote of the function.

fx=ex+2

Do you think that there is a power function that increases

more rapidly than an exponential function whose base is greater than 1 ? Explain.
See all solutions

Recommended explanations on Math Textbooks

Statistics

Read Explanation

Calculus

Read Explanation

Applied Mathematics

Read Explanation

Pure Maths

Read Explanation

Decision Maths

Read Explanation

Mechanics Maths

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.