Question

To get $700 after 4 years at 3% compounded monthly the present value of $700 is $

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$700\\ r=rate\to 3\%\to (3)/(100)\to &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\to &12\\ t=years\to &4 \end{cases} \\\\\\ A=700\left(1+(0.03)/(12)\right)^(12\cdot 4)\implies A=700(1.0025)^(48)`