+0  
 
0
119
1
avatar

n=16

i= 0.043

PMT= $295

PV= ?

Guest Jul 2, 2017
Sort: 

1+0 Answers

 #1
avatar
0

It seems you yourself could set this into a formula as you already know the values (which is the difficult part of deriving the correct values from questions). Would have also helped if you noted the payment time period... I assumed it's an annual payment...

 

The notation for these values depicts A(P/A, i%, n) = PV

Now to apply the formula:

PV = A((((1+i)^n)-1)/(i*(1+i)^n)

PV = 295((((1.043)^16)-1)/(.043*(1.043)^16)

PV = $3362.59

In the title it states you want a future value yet in the description you ask for a present value...

Regardless, let's convert the present value to a future value.

FV = 3362.59(1.043^16)

FV = $6595.12

Guest Jul 3, 2017
edited by Guest  Jul 3, 2017

10 Online Users

avatar
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details