Question

Using provided data, solve for present value. When calculating 1/(1+I/Y)^N, round your answer to four decimal places. Use your rounded answer to calculate PV; enter PV rounded to the nearest dollar. When entering (1+I/Y) into the formula, be sure to solve for (1+I/Y) and then enter the result rounded to two decimal places.

Facts
PV:
FV:	$140,000
Annual Interest Rate:	12%
I/Y:	1%
n: (Number of years)	5
N: (Number of compounding periods)	60
Compounded (Y):	Monthly

Formula Method
PV	=	FV	X	1/	(1+I/Y)	^N
	=		X	1/
	=		X
	=

Answer 1

faise Value 28 140000 Anterest = 1% per month No.d lesiod 2 60 brosent Value a fair value (1+x)^N 140000 (17.01) 60 1,40000 (1.01) 60 140 000 108167 => $ 77063

(1+I/Y)= 1+.01= 1.01 (two decimal)

1/(1+I/Y)^60 = 1.8167 (4 decimal)