Question

When required the following logarithms may be used.
$\log 2=.3010300,\log 3=.4771213$,
$\log 7=.8450980,\log 11=1.0413927$.
Find, correct to a farthing, the present value of $10000$ pounds due $8$ years hence at $5$ per cent. compound interest; given
$\log 67683.94=4.8304856$.

Answer 1

$A=P{(1+\frac{R}{100})}^n$

$\Rightarrow P=100000(1.05{)}^{-8}$

$\Rightarrow \log P=5-8\log 1.05$

$\Rightarrow \log P=4.8304856$

$\Rightarrow P=67683.94$