Saturday

October 25, 2014

October 25, 2014

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**

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

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

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

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% ...

Fianacial Management in Health Care Organizations - Resource: Ch. 5 of Financial...

FIN200- FV, PV and Annuity Due CP - I just want to know if anyone can help me in...

Math - Compare the results of the present value of a $6,000 ordinary annuity at ...