Find the amount that should be invested now to accumulate the following amount, if the money is compounded asindicated.
-$\$ 26,100$ at $5 \%$ compounded annually for $3 \mathrm{yr}$
A) $\$ 30,214.01$
B) $\$ 3553.84$
C) $\$ 23,673.47$
D) $\$ 22,546.16$

Question

Quizplus · Accepted Answer

To find the present value, use the formula $ P = \frac{A}{(1 + r)^n} $ where $ A = 26,100 $, $ r = 0.05 $, and $ n = 3 $. Calculating gives $ P = \frac{26,100}{(1.05)^3} \approx 22,546.16 $.

Find the Amount That Should Be Invested Now to Accumulate $26,100\$ 26,100$26,100

Find the Amount That Should Be Invested Now to Accumulate $\$ 26,100$