IB Mathematical Studies, Financial Mathematics, Compound Interest, Present value
The general compounding formula is:
Where F is the future value of the investment (=$40,000), P the principal, r is the interest rate per compound period (
) and n is the number of compounding periods (=3*12=36 months).
The guidelines for doing this exercise directly to GDC Casio FX-9860 is
TVM -> F2: Compound Interest -> n=36, I%=8, FV=240,000, P/Y=12, C/Y=12 and then press PV and get your result with a negative sign is PV.
Hope these help