Present value is the amount of money that must be invested now at a given rate of interest to produce a given future value. For a 1-year investment, the present value can be calculated using Present value = Future value 1 + r, where r is the yearly interest rate expressed as a decimal. (Thus, if the yearly interest rate is 8%, then 1 + r = 1.08.) If an investment yielding a yearly interest rate of 13% is available, what is the present value of an investment that will be worth $4000 at the end of 1 year? That is, how much must be invested today at 13% in order for the investment to have a value of $4000 at the end of a year? (Round your answer to two decimal places.)
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Present value is the amount of money that must be invested now at a given rate of interest to produce a given future value. For a 1-year investment, the present value can be calculated using
| Future value |
| 1 + r |
where r is the yearly interest rate expressed as a decimal. (Thus, if the yearly interest rate is 8%, then
If an investment yielding a yearly interest rate of 13% is available, what is the present value of an investment that will be worth $4000 at the end of 1 year? That is, how much must be invested today at 13% in order for the investment to have a value of $4000 at the end of a year? (Round your answer to two decimal places.)
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