Find the PV of $14,999. Discount rate is 9.9%. Discount it back 9 years. Monthly compounding....

Find the PV of $14,999. Discount rate is 9.9%. Discount it back 9 years. Monthly compounding.

	A.	$6,175.8
	B.	$6,176.5
	C.	$6,180.8
	D.	$6,179.6
	E.	$6,177.12

Expert Solution

	Present value	FV×(1÷(1+r)^n)

	Here,

A	rate per annum	9.90%
B	Number of years	9
C	Number of compoundings per per annum	12
A÷C	rate per period ( r)	0.83%
B×C	Number of periods (n)	108
	Future value (FV)	14,999

	Present value	$ 6,175.8
		14999×(1÷(1+0.83%)^108)

jeff jeffy answered 2 years ago

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