Calculate Present Value for $10,707.75 at 8.9% Interest Compounded Annually Over 44 Years

Math Problem Statement

Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated.

$10 comma 707.7510,707.75

8.98.9%

compounded

annuallyannually

for

yearsyears

Question content area bottom

Part 1

The present value is

$enter your response here.

(Do not round until the final answer. Then round to the nearest cent as needed.)

To find the present value (PV), we use the present value formula for compound interest:

$PV = \dfrac{A}{(1 + r)^t}$

Where:

Let's calculate:

= \dfrac{10,707.75}{(1.089)^{44}}$$ First, calculate $$(1.089)^{44}$$: $$1.089^{44} \approx 34.278$$ Now, divide the accumulated amount by this value: $$PV = \dfrac{10,707.75}{34.278} \approx 312.38$$ Thus, the present value is approximately **$312.38**. Would you like further clarification or have any questions? Here are 5 related questions: 1. How does changing the interest rate affect the present value? 2. What happens if the compounding is done quarterly instead of annually? 3. How would the present value change if the investment period was shorter? 4. What is the future value if the initial investment is known? 5. How does continuous compounding affect the present value? **Tip:** Always ensure to convert percentage rates into decimal form when using them in formulas.

Drop file here or Click Here to upload

Compound Interest
Present Value
Exponential Growth

PV = A / (1 + r)^t

Compound Interest Formula

Grades 10-12

Calculate Present Value of 13,048.54 at 5.4% Compound Interest for 7 Years

Present Value of $10,752.34 at 3.3% Compounded Annually for 5 Years

Compound Interest Calculation for $8,700 at 7% Annually for 4 Years

Calculate the Present Value of $10,300 with 8% Interest Over 8 Years

Present Value Calculation with Compound Interest Formula - $679 in 7 Years