Answer to Question #119501 in Financial Math for Piya

Question #119501

I. Find the present and future value of $1000 received every month end for 20 years if the interest rate is J12 = 12% p.a.

Expert's answer

Present value of the annuity is:

"PV = 1000*\\frac{1 - (1 + 0.12)^{-20}}{0.12} = 7,469.44."

The future value of the annuity is:

"FV = 1000*\\frac{(1 + 0.12)^{20} - 1}{0.12} = 72,052.44."

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23.06.20, 17:44

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23.06.20, 08:49

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04.06.20, 00:30

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Reynold Hinge

03.06.20, 03:10

II. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years.

Answer to Question #119501 in Financial Math for Piya

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