Question

Find the present value of the given future payment at the specified interest rate.

6000​$ due in 2 years at
6.5​% compounded daily

Answer 1

6.5% of 6000$=6000$x6.5/100=390$

amount of interest = 390$x2=780$

Compound Interest

n=1, 2

Po=6000$

Pn=Po(1+r)^n

Pn=6000$1+6.5%)^n

Pn=6000$(1.065)^n

P1=6000$(1.065)^1=6390$

P2=6000$(1.065)^2=6805.35