Evaluate $ 25 , 000 ( 1 + 0.07 12 ) 4 \frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right) ^{4}} ( 1 + 12 0.07 ) 4 $25 , 000 A) $25,588.46B) $19,927.38C) $19,072.38D) $24,855.01E) $24,425.08

Question

Evaluate   $ 25 , 000 ( 1 + 0.07 12 )  4 \frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right) ^{4}} ( 1 + 12 0.07 ​ )  4 $25 , 000 ​ A)  $25,588.46B)  $19,927.38C)  $19,072.38D)  $24,855.01E)  $24,425.08

along chanel · Accepted Answer

Final Answer : E, Explanation :   The correct answer is found by evaluating the given expression. The expression represents the present value of $25,000, discounted at a monthly interest rate of 0.07/12 for 4 months. The calculation is as follows:   $ 25 , 000 / ( 1 + 0.07 12 ) 4  \$ 25,000 / \left(1+\frac{0.07}{12}\right)^{4} $25 , 000/ ( 1 + 12 0.07 ​ ) 4  . When calculated, this gives approximately $24,425.08, which matches option E.

Evaluate $4\frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right) ^{4}}$

A) $25,588.46
B) $19,927.38
C) $19,072.38
D) $24,855.01
E) $24,425.08

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Learning Objectives

Related questions

Evaluate $25,000(1+0.0712) 4\frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right) ^{4}}(1+120.07​) 4$25,000​ A) $25,588.46B) $19,927.38C) $19,072.38D) $24,855.01E) $24,425.08

Definitions

Learning Objectives

Learning Objectives

Related questions

Evaluate $4\frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right) ^{4}}$

A) $25,588.46
B) $19,927.38
C) $19,072.38
D) $24,855.01
E) $24,425.08