+24
FV=4148; n=16, i=0.07
can someone tell me how to solve for PMT? I get the first part correct but I keep getting the result wrong when I do the division so I cant make it to the second part
+118723 You need to give a little more information Carol.
CPhill has guessed what you want and he is most likely correct but what does PMT stand for.
Not everyone around uses the same letters or acronymes for a particular meaning.
This is obviously a present value question but is it for an ordinary annuity or for an annuity due?
CPhill has assumed ordinary annuity because this is the most common.
He probably guessed correctly.
Thanks Chris.
+130511 Using what you've given me along with this formula (which I hope is the correct one!!), we have
P = [(.07) (4148)] / [ 1 - (1 + .07)-16] = $439.097 = $439.10
BTW.....It might be easiest to evaluate the numerator and denominator separately and then perform the division.....
+118723 You need to give a little more information Carol.
CPhill has guessed what you want and he is most likely correct but what does PMT stand for.
Not everyone around uses the same letters or acronymes for a particular meaning.
This is obviously a present value question but is it for an ordinary annuity or for an annuity due?
CPhill has assumed ordinary annuity because this is the most common.
He probably guessed correctly.
Thanks Chris.
