Find the present value that will grow to $30,000 if interest is 2% compounded quarterly for 17 quarters

Present value is;PV ≈ $27,561

Step-by-step explanation:

We are given;

Future value;FV = $30,000

Rate quarterly;R = 2% × ¼ = 1/200 = 0.005

Time;T = 17 quarters

We can find the present value from the formula;

FV = PV(1 + R)^(T)

So, making PV the subject, we have;

PV = FV/[(1 + R)^(T)]

Where PV is present value and all other terms remain as i defined them earlier.

Plugging in the relevant values, we obtain ;

PV = 30000/[(1 + 0.005)^(17)]

PV ≈ $27,561

step-by-step explanation: