Question

find the present value PV of the given investment. round your answer to the nearest cent. An investment earns 5% per year and is worth $1,000 after 6 months.

Answer 1

is it 1001.3?

Answer 2

because\[1000/1+0.05*6\]

Answer 3

Total = princ * (1 + rate)^n where 'n' is years
Total = 1,000 * (1.05)^.5
Total = 1,000 * 1.0246950766
Total = 1,024.70

Answer 4

If it was for 1 full year then
Total = 1,000 * 1.05^1
Total = 1,050.00
SO, roughly after 6 months it earns $24 interest

Answer 5

Isn't it \[1000/(1.05)*6\]

Answer 6

for the 6 months

Answer 7

That equals 158.73
Unless you mean (1,000/1.05)*6
which equals 5,714.29