PV of an ordinary annuity annuity

sabina

Hi, when you try to commute the PV of an ordinary annuity, why do you have to set FV as 0? You don't need to set PV as 0 when you commute the FV of an ordinary annuity.

Kiakaha

I don't think you need to consider the FV as 0. I can only talk about the TI calculator, but if you think of it conceptually, n=# periods, which is really # payments in the case of an annuity. The whole purpose of the annuity is to receive x number of payments and paying something on day 1. I hope that makes sense.

LokiDog2

if you do 2nd clr tvm - you do not need to set FV to 0.

CP