The present worth of $3600 due in 2 years at 20% per annum compound interest is?

The present worth of $3600 due in 2 years at 20% per annum compound interest is?

Answer/Solution

$2500

Steps/Work

Present worth = 3600/ (1 + 20/100)^2 = 3600 * 5/6 * 5/6 = $2500
Answer is E

Gain Calculator / Auto Solver

The present worth of $ due in years at % per annum compound interest is?

Calculated Answer

2500

Step by Step Solution

In order to solve problem, you must evaluate n₀ / n₂ / 100 + 1^n₁.

n₀ =	3600
n₁ =	2
n₂ =	20

n₀ / n₂ / 100 + 1^n₁
Evaluate n₂ / 100 = 0.2
n₀ / 0.2 + 1^n₁
Evaluate 0.2 + 1 = 1.2
n₀ / 1.2^n₁
Evaluate 1.2^n₁ = 1.44
n₀ / 1.44
Evaluate n₀ / 1.44 = 2500
2500
The answer to the problem and the result of n₀ / n₂ / 100 + 1^n₁ is 2500