Question

Assume that we want to have \$500 three periods from today. use the present value of a single sum formula to calculate how much we must invest now, at an interest rate of 8?

1. We must invest  396.90, at an interest rate of 8.
Hobby is the fee you pay to borrow cash or the cost you price to lend money. interest is most customarily contemplated as an annual percent of the amount of a mortgage. This percent is called the interest price on the loan. for example, a bank will pay you interest when you deposit your money in a savings account.
The forms of interest consist of simple hobby, accumulated hobby, and compounding hobby. while money is borrowed, generally via the way of a loan, the borrower is required to pay the interest agreed upon by the two events.
There has been a energetic hobby inside the elections inside the final  weeks. She’d appreciated him in the beginning, but soon lost interest. Synonyms: significance, issue, importance, moment extra Synonyms of interest. countable noun.
value = Amount*(1+i)n
= 500*(1+.08)3
= 500*0.7938
Present value = 396.90