Tuesday

March 31, 2015

March 31, 2015

Posted by **Ms. Renee** on Tuesday, July 11, 2006 at 11:49pm.

An EXCEL spreadsheet will be helpful for these types of calculations.

Let S1 be savings in year 1, S2 in year 2, and so on. (For now, unless you have been othewise instructed, assume annual savings is received on the last day of the year.) Let r be the interest rate.

First, calculate the nominal amount of cash that will be there after 8 years.

T = S1*(1+r)^7 + S2*(1+r)^6 ... S8(1+r)^0

Now deflate T by 8 years of annual discounting at rate d. PV = T/(1+d)^8 Since you did'nt specifiy a discount rate d, assume d=r.

Thanks! That is much easier!

**Answer this Question**

**Related Questions**

Financial Management - Your company will generate $68,000 in an- nual revenue ...

math - find the present value of ordinary annuity payments of 890 each year for ...

Fins nance business - 1. Find the future value of current $1,000 5 year from ...

Business Algebra - Part I: As a financial planner a client comes to you for ...

Personal Finance - NEED HELP IMMEDIATELY, HAVE UNTIL 10P.M. CENTRAL TO HAVE ...

accounting - Mr. Jones intends to retire in 20 years at the age of 65. As yet ...

Finance - What is the present value (or purchase price) of an annuity product ...

finances - Calculate the future value of the following: o $5,000 compounded ...

Finance - An investment will provide Nicholas with $100 at the end of each year ...

business math - If Naomi decides that she will invest $3,000 per year in a 6% ...