Solve the problem

N#27,i#0.053,pmt#175,pv#?

If you make N=27 annual payments of A=$175 with annual interest of i=0.053, the future value is

FV=A(1+R+R^2+...+RN-1)
=A(RN-1)/(R-1)
=A(RN-1)/i

where R=1+i

The present value is then
PV=FV/(RN)
=A(RN-1)/(i*RN)

I get a little over 10000.

*correction

I get a little less than 2500.

To solve the problem, we need to find the value of "pv" given the values of "N," "i," and "pmt."

The formula to calculate the present value (pv) of a series of future cash flows is:

pv = pmt * ((1 - (1 + i)^(-N)) / i)

Let's substitute the given values into the formula:

N = 27
i = 0.053
pmt = 175
pv = ?

Now let's calculate the present value using the formula:

pv = 175 * ((1 - (1 + 0.053)^(-27)) / 0.053)

To simplify the calculation, we can use a scientific calculator or a spreadsheet software like Microsoft Excel or Google Sheets.

Alternatively, if you don't have a scientific calculator or a spreadsheet software, you can also use online financial calculators available on websites like Investopedia or calculator.net. These online calculators usually have fields where you can enter the values of N, i, and pmt, and they will provide the calculated value of pv.

Once you perform the calculation, the present value (pv) will be determined.