#1**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