Question

Billy has an annuity that pays him $9800 at the beginning of each year. Assume the economy will grow at a rate of 3.3% annually. What is the value of the annuity if he received it now instead of over a period of 10 years?

Answer 1

I have a formula but it's not working...giving me negative values

Answer 2

@leflame

Answer 3

you want the answer or the values ?

Answer 4

A way to solve it would be awesome

Answer 5

This should be the equation: http://prntscr.com/5yxxvd

Answer 6

C = 9800, i = 0.033, nt = 1 x 10

Answer 7

but it's giving me a huge negative value

Answer 8

I figured it out, nevermind!