Question

HELP!!! Need MAJOR HELP: present value of an annuity of $50, 6%, 6yr, assume n =12.

Answer 1

@chelsaloo Post the Present Value formula here, then I'll help you :)

Answer 2

m=P(r/n)
1-(1+r/n) ^nt

Answer 3

It's one giant fraction looking thing.

Answer 4

I assume your post asks for Monthly payment?

Answer 5

First what's r?

Answer 6

All it says is, "Use a calculator to evaluate the present value of an annuity formula. For the values of the variables m, r, and t. Assume n= 12 (rounding your answer). #50; 6%; 6yr

Answer 7

Hint: Rate r is something have %

Answer 8

@chelsaloo which one is r here?

Answer 9

r=6%

Answer 10

6% = ...

Answer 11

-> 6% / 12 = ...?

Answer 12

is it 1.06?

Answer 13

never mind. .005?

Answer 14

Then 1 + r/ 12 = ....?

Answer 15

1+.06/12=1.005

Answer 16

72

Answer 17

=> ( 1 + r/ 12 ) ^ -( 6 * 12) = ....?

Answer 18

oops.

Answer 19

12.364

Answer 20

Is that right?

Answer 21

1 - [ ( 1 + r/ 12 ) ^ -( 6 * 12) ] = ....?

Answer 22

Now you've lost me. I don't know what to do with the exponents. It's a negative and I don't remember what to do?!

Answer 23

No, ( 1 + r/ 12 ) ^ -( 6 * 12) = .6983

Answer 24

How did you get that??

Answer 25

Just plug exponent ^ - 72

Answer 26

Yeah, I know that, but how did you turn it positive??? My cal says it comes out 0 or it can't process it.

Answer 27

Hello?

Answer 28

Make sure you plug the negative sign, the one with (-), not the subtraction sign!