Question

Find the present value of the given future amount. $98,000 for 18

months at 9% simple interest. What is the present value?

Answer 1

The present value is $ 86,343.6123

Step-by-step explanation:

Given, Future Amount = $ 98000

Rate = 9%

Time = 18 Months

P = ( A ) / ( 1 + r * t )

= (98000) / ( 1 + (0.09)*(18/12))

= (98000) / 1.135

= $ 86,343.6123

Hence, The present value is $ 86,343.6123

Answer 2

6758.62$

Step-by-step explanation:

A=P(1+rt), A is the future amount, P is the principle amount, r is rate if interest and t is time ( in years)

98000=P(1+(9×18/12)

196000=29P

P= 6758.62$