Question

Need help on process of annuity problem

Answer 1

The answer is A

Answer 2

We were taught to use TVM solver rather than a formula but if IM not mistaken, you’re math involves finding the PV value of the future deposits by setting the pmt to -16000, multiplying it by the number of payments “20” and then adjusting the value back to t=4 by subtracting out the interest earned.

I understand that part, but not too sure about what the next steps explain.