Question

1. Find the present value and the compound discount of ​$7227.71 due 6 years from now if money is worth 4.4% compounded annually.

2. What is the principal that will grow to ​$1400 in five ​years, one month at 8.1​% compounded quarterly​?

Answer 1

1)	PV= FV/(1+r)^n
	Where,
	FV= Future Value
	PV = Present Value
	r = Interest rate
	n= periods in number
	= $7227.71/( 1+0.044)^6
	=7227.71/1.2948
	= $5582.1
2)	PV= FV/(1+r)^n
	Where,
	FV= Future Value
	PV = Present Value
	r = Interest rate
	n= periods in number =5 years *4 + 0.33 for 1 month = 20.33
	= $1400/( 1+0.02025)^20.3333
	=1400/1.50326
	= $931.31