Posted by Dania on .
please - How do we manually calculate the Present Value of annuity step by step using this formula:
PV=R[1-(1+i)-n / i
PV = 2700[1-(1+.065)-4
___________________ = 9249.66
How did they get this answer (9249.66)?
I'm so lost. just to clarify too, -4 is an exponent. I couldn't change font for this to be apparent. Please a step by step answer would really help. Thank you in advance for your help, this site is such a wonderful service.
hoping you have a decent calculator with brackets, here are the keystrokes I did on my "Sharp"
yx , (you should have such a key)
I get 9249.66
If I could hug you I would. You have no idea how helpful this was, I can now proceed with the rest of the equations. Thank you kindly :)