Answer to Question #99082 in Finance for murad

Question

Payments of $ 670 are being made at the end of each month for 5 years at an interest of 8% compounded monthly. Calculate the Present Value.

Answer 1

$V=\frac{A}{r}\times [1-({1+r})^{-n}]$

Where,

r=8%/12= 0.006667

n=5x12=60 months

A=$670

Thus

Present value, on solving

V= $33043.35