Respuesta :
Answer:
The present value of the bonus is $3900.
Step-by-step explanation:
Let $P is the present value of the bonus.
So, this $P amount of bonus grows for 5 years at an interest rate of 5% compounded quarterly to become $5000 lump-sum.
Then the quarterly interest is [tex](\frac{5}{4})= 1.25\%[/tex].
So, from the formula of compound interest we can write the equation
[tex]5000 = P(1 + \frac{1.25}{100} )^{5 \times 4}[/tex]
⇒ 5000 = P(1.282)
⇒ P = $3900
Therefore, the present value of the bonus is $3900. (Answer)
Answer:
3900
Step-by-step explanation:
just answer it and got it right
