thisisbrianly

FV =0; N=5; PMT=-20,000; I/Y=10%

CPT "PV". PV = 75,815.74. Now add 20,000 to it because the first 20,000 is made today and not at the end of the year. Therefore PV = 75,815.74 + 20,000 = $95,815.74

This is the amount of money he needs to set aside to meet his 6 annual payments of 20k starting today.



Edited 1 time(s). Last edit at Friday, November 26, 2010 at 08:47AM by Hey_I_am_the_Dude_man.