Three formulas for calculating present value are shown below.
Formula #1: PV= FV/(1+i)^nt
Formula #2: PVOA=C(1/i-1/i(1+i)^nt)
Formula #3: PVAD=C(1/i-1/i(1+i)^nt-1)+C

Part 1: Using complete sentences, explain how each of these formulas is used.
Part 2: Create an example scenario for at least one of the formulas.

Question

Three formulas for calculating present value are shown below.
Formula #1: PV= FV/(1+i)^nt
Formula #2: PVOA=C(1/i-1/i(1+i)^nt)
Formula #3: PVAD=C(1/i-1/i(1+i)^nt-1)+C

Part 1: Using complete sentences, explain how each of these formulas is used.
Part 2: Create an example scenario for at least one of the formulas.

anonymous · Answer

@sarahnichols3 @sammixboo @AlexandervonHumboldt2 @Lyrae @pooja195

anonymous · Answer

I am looking for someone to show me how to do this please help. please don't just give me the answer

mathmate · Answer

See: http://www.getobjects.com/Components/Finance/TVM/pva.html for PVOA and PVAD and http://en.wikipedia.org/wiki/Present_value for PV

anonymous · Answer

thank you!

mathmate · Answer

You're welcome!