Mat 221 week 4 discussion 1 (1) - The desired item I have...

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The desired item I have chosen for the discussion is a car. The cost of the car in 12 years will be $30,000 and the interest rate I have chosen is 7%. I used the Present Value Formula on page 270 of Elementary and Intermediate Algebra. “The present value P that will amount to A dollars after n years with interest compounded annually at annual interest rate r is given by the formula P=A(1+R ¿ n .” (Dugopolski, M, 2012) The Negative Exponent in this equation is -12 because I want to purchase this item in 12 years. The letter A in the equation is 30,000 because it represents the amount I’m going to spend on the

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