Find the present value, using the present value formula to achieve 1005 in 7 years at 5% interest compounded monthly. Type your answer to the nearest hundredths.

Solution

Solution

Interest : 296.27

Solution steps

Translate the problem into an equation:

1005 = 708.72669 \dots + I

Solve for

I, 1005 = 708.72669 \dots + I : I = 296.27

Interest : 296.27

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