Find the value of P given F=10709.41, r=2%,m=12, t=2 years.

Question

use appropriate simple or compound interest formula to solve

Answer 1

Stephanie.

 

I realize it's been a few hours since you posted so rather than ask some questions, I'm going to answer your question based on a few assumptions about the problem

 

Here goes:

P = present value: amount invested

F = future value: amount accumulated after two years

r = interest rate

m = frequency of compounding: monthly = 12

t = time invested = 2 years

 

F = P(1+r/m)^(tm)

10709.41 = P(1+.02/12)²⁴

10709.41 = P(1.040776)

P = 10,289.83