Question

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

Answer 1

$$n=12 \times 5=60$$

$$r= \frac {0.08}{12}= 0.00667$$

$$670 \times \frac {1-(1+ 0.00667)^{-60}}{0.00667}=33043.35$$

Answer: 33043.35.