Calculate Present Value of the Compound Interest Loan

Demers:

Hi, how do you calculate the present value of the compound interest loan with the following:

$22,000 after 7 years at 3% if the interest is compounded in the following ways.

1. Annually i = 0.03
2. Quarterly i = 0.03/4 = 0.0075

Thank you in advance for your assistance.
sdemers@snet.net

Demers:

Hi, how do you calculate the present value of the compound interest loan with the following:

$22,000 after 7 years at 3% if the interest is compounded in the following ways. I will assume that no payments have been made

1. Annually i=0.03 n=7
S = P(1+i)ⁿ
22000 = P (1.03)⁷
22000/ (1.03)⁷ = P

22000/(1.03^7)=
P = $17888.01
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2. Quarterly i= 0.03/4 = 0.0075, n=7*4 = 28
S = P(1+i) ⁿ
22000=P(1.0075^28)
22000/(1.0075^28)=P

22000/(1.0075^28)
P=$17846.83

Thank you in advance for your assistance.
sdemers@snet.net