The cash value of compound interest

If n period someone has to repay his loan of C with the calculation of interest rate i%/period and it turns out that person is able to pay off his debt now, then it can be said that the person pay by cash.

Formula of the cash value of compound interest

Information :
CV = Cash Value
C = First capital
i = percentage of interest
n = period

The Problems example of the cash value of compound interest

Determine the first capital if the final value of the capital $17,262,804.24 after the interest rate for 4 years 9 months with an interest rate of 8%/quarter!

Answer:
C = $ 17,262,804.24
i = 8% / kartal = 0.08 / quarter
n = 4 years 9 months = 19 quarter

So the first capital is $4,000,000.

Similarly this article.
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Referensi :

• To'Ali's book math group accounting and sales

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