What am i doing wrong in this financial math problem?

  • Thread starter Thread starter rykoshell
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rykoshell

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can someone please tell me what i am doing wrong with this problem

Find the present value of each future amount.

$29,764 for 310 days ; money earns 7.2%

the answer according to the book is 28,048.80 and my answer is 28,048.63
i double checked my answer and i still get the same answer what am i doing wrong?
 
The period of compounding may be relevant.
Your time period is not a full year, which would be 365 days. Therefore you can't just take 72%

What I'd do is multiply the principle by 310/365 by 7.2. Or have you done that?

If compounding is daily or monthly or quarterly or whatever, you have an additional consideration.
 
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