Compund Interest - Future Value and Present Value Help

Question

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A debt of $8000 is payable in 7 years and 5 months. Determine the accumulated value of the debt at 10.8% p.a compounded annually.

Any help would be great thanks.

Guest Nov 13, 2015

edited by Guest Nov 13, 2015

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Best Answer

This is easier than some problems as the interest is compounded annually....

How many annual periods are there??? 7 years + 5 months = 7 + 5/12 yrs = 7.41667 y108)rs

FV = PV(1.108)^7.41667 = 17116.96

Guest Nov 13, 2015

Guest · Answer 1 · 2015-11-13T07:34:24

This is easier than some problems as the interest is compounded annually....

How many annual periods are there??? 7 years + 5 months = 7 + 5/12 yrs = 7.41667 y108)rs

FV = PV(1.108)^7.41667 = 17116.96

Guest · Answer 2 · 2015-11-13T07:35:36

This is easier than some problems as the interest is compounded annually....

How many annual periods are there??? 7 years + 5 months = 7 + 5/12 yrs = 7.41667 yrs

FV = PV(1.108)^7.41667 = 17116.96