Can someone help me out with this question, please? (: (Advanced Algebra with Financial Applications)

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.

I chose Formula #1 which is PV = FV/(1+i)^(nt)

Question

Can someone help me out with this question, please? (: (Advanced Algebra with Financial Applications)

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.

I chose Formula #1 which is PV = FV/(1+i)^(nt)

doc.brown · Answer

What do all the letters mean?

anonymous · Answer

PV = Present Value
FV = Future Value
i = Interest Rate
t = Time
n = Number of years compounded

anonymous · Answer

Have you worked with Financial Algebra before? I just want to make sure I am getting the correct kind of help

doc.brown · Answer

Doctor Brown went to the... horse races, and wanted to make a bet.  He didn't bring any money with him but he knew a shady character that would give him a loan.  He borrowed a value in the present and intended to pay the money back in the future.
Keep going.

anonymous · Answer

Okay

doc.brown · Answer

Why do you multiply time by the number of years? nt?

doc.brown · Answer

Oh I get it!
Say the loan shark wants me to pay him back within the year n=1, but charges me the interest every month t=12.