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B.. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%?

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To calculate the present value to be paid, you need to calculate the simple interest which is gotten by multiplying principal, rate and time. Therefore I = p r t which is I = 15,000 x 20 x 18/100 = 54,000.

Helpful (1) Fun Thanks for voting Comments (8)
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Isn't the correct answer $5400.00? Good heavens $54,000.00 on a $15,000.00 loan is much more than 18%.
Don't take offence to my question, it just seems, like way too much, thanks. :)
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Yep 3x now, and it's still $5,400.00
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I think you are wrong my friend. Take it as 15,000 x 18 x 20 = 5,400,000, then divide this by 100 and you get 54,000.00
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No my dear 54,000.00 divided by 100 = 540 not 54,000.00, how could that be? You're starting with 54k and ending up with 54k after your division. :)
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Its so simple and I have shown my way of calculation...what don't you understand?
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Okay let's not get argumentative about this, like I said I was just asking.
15,000.00 x 0.18% x 20 = 2700.00 x 20 =54000, then move the decimal one to the left and you have 5400.

We could also throw a question similar back out there and see what someone else comes up with. I worked in banks and with #'s all my life. If I'm wrong I'm wrong, but somehow I don't think so. Google "how to calculate your interest paid on a loan.
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Ok dear..my hands up but I still stick to my answer.
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lol, I'm going to throw the question back out there, just for the heck of it. I still say your not moving the decimal one to the left. Oh well here goes! :P
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I believe this is the right formula to calculate your answer. PXRXT=I (Interest)
So, (principle $15,000.00) x (rate 0.18%) x (time 20 years)

Hopefully someone who is more in tune with this, will correct me, if I'm wrong.

Helpful Fun Thanks for voting Comments (5)
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So when you calculate this what is your final answer?
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$5,400.00
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are you sure...a second trial I still get $54,000.
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Yes I'm sure. Try simplifying it.

15 x 18 = 270 then x 2 = 5400

There is no way it's 54,000.00, heck if that were the case no-one could afford to borrow money, I think you're forgetting to move the decimal, one to the left :P
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I think you are wrong my friend. Take it as 15,000 x 18 x 20 = 5,400,000, then divide this by 100 and you get 54,000.00
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15000(0.18)=
if it's 18% per year
15000(0.18)(20)=

Helpful Fun Thanks for voting Comments (2)
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What is your final answer after you calculate this?
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Yes please tell, what is your answer? TY!
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