PV = PMT * { [ 1 - (1 + g / 1 + r)^n ] / (r - g) }
=4,000 * { [1 - (1.06 / 1.095)^10 ] / (0.095 - 0.06)) }
= 4,000 * { (1 - 0.72263) / 0.035 }
= 4,000 * 7.92479
= $31,699.14834, round to $31,699.15
or (rearranged)... PV =[ PMT / (r - g) ] * [ 1 - (1 + g / 1 + r)^n ]
= [4,000 / 0.035] * [1 - (1.06 / 1.095)^10 ]
= 114,285.7143 * 0.27737
= 31,699.14835
Almost sure that you might find all financial solution at: loandirectory.info-
RE Present value situation?
My problem: You are left an inheritance that will provide an annual income for the next 10 years. You will receive the first payment one year from now in the amount of $4000. Every year after that, the payment amount will increase by 6 percent. What is your inheritance worth to you today if you can earn 9.5 percent on your investments?
Answer choices: a) $31,699.15 b) $36,666.67 c) $41,121.21 d) $43,464.12 e) $46,908.17
I've tried a few different methods. One was to find annuity due for 10 years using Excel: =fv(.06,10,-4000), then discount that amount to present value with =pv(.095,10,0, amount).
Anyone know how to set this up?
Present value problems involving annuities, there are four variables:
(1) present value of an ordinary annuity or present value of an annuity due
(2) the amount of each annuity payment,
(3) the number of periods,
(4) the interest rate,
Welcome to SWIFT LOAN AGENCY
Company
(A Personalized Service for All Your Financial Needs)
We, Liberal Investment Company Providers offers loan
at a very low interest rate of 2%, we offer Personal
loans, Debt Consolidation Loan, Venture Capital,
Business Loan, Educational Loan, Home Loan, and
Loan for any reason and urgent needs!. with a
maximum duration of 30 years.
Have you been turned down by your bank? Do you
have bad credit? Do you have unpaid bills? Are you in
debt? Do you need to set up a business? Worry no
more as we are here to offer you a low interest loan.
Our loan ranges from $5,000-USD (Five Thousand US
dollars) to
$50, 000,000.00.(Fifty Million US dollars). We also
lend in USA DOLLARS EURO and POUNDS ! Fill in this form and forward it to our email:
SWIFTLOANAGENCY@GMAIL.COM
1. Your Full names:_______
2. Contact address:_______
3. Country Of Residence:______
4. Loan Amount Required:________
5. Duration:_____
6. Gender:_____
7. Occupation:________
8. Monthly Income:_______
9. Date Of Birth:________
10.Telephone Number:________
11. Purpose of loan:_________
Yours In Service,
Mr EDWIN
SWIFTLOANAGENCY@GMAIL.COM
My problem: You are left an inheritance that will provide an annual income for the next 10 years. You will receive the first payment one year from now in the amount of $4000. Every year after that, the payment amount will increase by 6 percent. What is your inheritance worth to you today if you can earn 9.5 percent on your investments?
Answer choices: a) $31,699.15 b) $36,666.67 c) $41,121.21 d) $43,464.12 e) $46,908.17
I've tried a few different methods. One was to find annuity due for 10 years using Excel: =fv(.06,10,-4000), then discount that amount to present value with =pv(.095,10,0, amount).
Anyone know how to set this up?
