What is the C in this formula?

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

Question

What is the C in this formula?

PVOA = C(1/i - 1/i(1+i)^nt)
How do you find C though?

anonymous · Answer

@jim_thompson5910

jim_thompson5910 · Answer

C is the cashflow I think?

jim_thompson5910 · Answer

basically how much is paying in or out per period

anonymous · Answer

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?

jim_thompson5910 · Answer

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

jim_thompson5910 · Answer

and yeah C = 9003 is the amount of money she gets per year

it is the cash flowing to her

anonymous · Answer

Oh ok. Cool! Thanks!! :)

jim_thompson5910 · Answer

you're welcome