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math

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please - How do we manually calculate the Present Value of annuity step by step using this formula:
PV=R[1-(1+i)-n / i

for example:

PV = 2700[1-(1+.065)-4
___________________ = 9249.66
0.065

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.

  • math -

    hoping you have a decent calculator with brackets, here are the keystrokes I did on my "Sharp"

    1
    -
    (
    1.065
    yx , (you should have such a key)
    4 ±
    )
    =
    ÷
    .065
    =
    x
    2700
    =

    I get 9249.66

  • math -

    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 :)

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