Choose one of the formulas above. Write a unique real world scenario that would be solved using the formula you chose. Solve for the present value of the scenario you wrote.

ill post the formulas!

Question

Choose one of the formulas above. Write a unique real world scenario that would be solved using the formula you chose. Solve for the present value of the scenario you wrote. 

ill post the formulas!

anonymous · Answer

attachment

anonymous · Answer

@zpupster  any help?

zpupster · Answer

do you need an explanation of the formula?

anonymous · Answer

no I need a real world problem to use. I can figure the problem out  I just need a problem and which formula to use.

zpupster · Answer

What is the present value of an annuity due if the interest rate is 5 percent and you are promised the money at the end of 3 years if the payment is $100 per year? Using the present value of an annuity due formula: PVADUE = 100 [1/0.05 - 1/0.05(1+0.053] (1 + 0.05) = $285.94 found it here http://bizfinance.about.com/od/interestrates/f/calculate-the-present-value-annuity-due.htm hope it helps!!