An environmental testing company needs to purchase $40,000 worth of equipment 2 years from now. At an interest rate of 20% per year, compounded quarterly, the present worth of the equipment is closest to?
Hi, Here we need to find the principle amount.
Here is the formula , Quarterly A = P (1 + r/4)^n4 = (quarterly compounding for n years)
Where A is the Amount, P is the principal amount , r is the interest rate and n -is ...
This shows how to determine present worth of equipment.