Question

What is the C in this formula?

PVOA = C(1/i - 1/i(1+i)^nt)
How do you find C though?

Answer 1

@jim_thompson5910

Answer 2

C is the cashflow I think?

Answer 3

basically how much is paying in or out per period

Answer 4

Yeah. Ok so this is the question. Madison has an annuity that pays $9,003 at the beginning of each year. If the economy grows at a rate of 3.4% each year, what is the value of the annuity if she received it in a lump sum now rather than over a period of 9 years?
So C would be $9,003?

Answer 5

Sounds like an annuity due instead of an ordinary annuity. The difference between the two is that the annuity due is paid at the beginning of the period

Answer 6

and yeah C = 9003 is the amount of money she gets per year

it is the cash flowing to her

Answer 7

Oh ok. Cool! Thanks!! :)

Answer 8

you're welcome