Algebra Word Problem Solver solves many types of Compound Interest word problems.

Compound Interest Word Problem Solver Example: Find Present Value given Future Value, Interest rate, Time Period and Compounding. See Other Compound Interest Word Problem Examples solved by the Algebra Word Problem Solver.

What You Enter

Find the present value of $1347.89 in 3.5 years, 6.77% compounded semiannually.

What You Get

Let A = Future Value
Let P = Present Value
Let r = Rate
Let t = Time
Let n = Interest periods per year
 
Given: A = $1347.89
Given: r = 6.77%
Given: n = 2
Given: T = 3.5 YEARS
 
                 -nt
P = A(1+r/n)   
                       -2*3.5
P = 1347.89(1+0.0677/2)      
 
                      -7
P = 1347.89(1+0.03385)  

P = $1,067.71

Solution: P = $1,067.71