Find the present value of RM10,000 to be received at the end of 10 months at 8% per month.

To find the present value (PV) of RM10,000 to be received at the end of 10 months at an interest rate of 8% per month, we use the present value formula for compound interest:

\[ PV = \frac{FV}{(1 + r)^n} \]

where:
- \( PV \) is the present value,
- \( FV \) is the future value (RM10,000),
- \( r \) is the monthly interest rate (8% or 0.08),
- \( n \) is the number of periods (10 months).

Let's plug in the values:

\[ PV = \frac{10,000}{(1 + 0.08)^{10}} \]

First, calculate \( (1 + 0.08)^{10} \):

\[ (1 + 0.08)^{10} = 1.08^{10} \approx 2.1589 \]

Now, divide the future value by this amount:

\[ PV = \frac{10,000}{2.1589} \approx 4,631.93 \]

Therefore, the present value of RM10,000 to be received at the end of 10 months at an 8% monthly interest rate is approximately RM4,631.93.

Would you like more details or have any questions?

Here are 5 numbered questions for you to ask:
1. How do I calculate the present value for a different interest rate or period?
2. What is the formula for future value in compound interest?
3. How does the interest rate affect the present value?
4. Can you explain the difference between simple interest and compound interest?
5. What are some practical applications of present value calculations?

**Tip:** Always check if the interest rate is compounded monthly, quarterly, or annually to use the correct formula for present value or future value calculations.

Learn how to calculate the present value (PV) of RM10,000 to be received at the end of 10 months at an interest rate of 8% per month. Detailed step-by-step solution using compound interest formulas. Suitable for high school students and anyone interested in finance calculations.

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