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标题: PV of an ordinary annuity [打印本页]

作者: sabina    时间: 2011-7-11 17:43     标题: PV of an ordinary annuity

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.
作者: Kiakaha    时间: 2011-7-11 17:43

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.
作者: LokiDog2    时间: 2011-7-11 17:43

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

CP




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