Question

What present value compounded annually at 5% will amount to 25,525.63 in 5 years?

Answer 1

P = I(1+r/n)^(nt)
Where P = final amount
I = initial
r = rate
n = number of times compounded per year (1)
t = years

Answer 2

We know all values except for I.
Can you plug these values in?

Answer 3

@darkknight - my opinion - not is this little confusable ?
with ,,t" years - i think number of years and there is again this ,,n" what mean the same too number of years

Answer 4

n = 1 in this case, this is compound interest @jhonyy9 so thats y it is good skill to have n there, if this were compounded semiannually then there would be a 2 where n is. do u understand jhonyy?

Answer 5

and for monthly ? 12 ?

Answer 6

yes

Answer 7

ok ty

Answer 8

np