if 9000 is due in 8.5 years at 8% compounded quarterly, then what is the present value?
I'm using the formula P=S(1+r)n and got the answer 7605.73 which I was told is wrong. Please help.
This is the formula you should use to calculate Present Value:
PV = FV / [1 + R]^N
PV = 9,000 / [1 + 0.08/4]^(8.5*4)
PV = 9,000 / [1.02]^34
PV = 9,000 / 1.960676.....
PV = $4,590.25
