3-Year DOP - Watch Plan ($350-400)

this series of problems calculates the present value of a set of payments that occur at each of the periods so if there's a series of equal payments that's an annuity those numbers go into the pmt and they have to be the same amount and occur on each of the periods all right sally offered to buy a fred's lake house she's going to pay 2 000 a month for 10 years okay so that'd be 10 years of monthly payments and each of the monthly payments that she's going to take out of her pocket is 2 000 i'm using the negative side she's not going to make any other payments after that and the interest rate fred wants to use to evaluate this is 7 percent it's monthly compounding so divide by 12 and then i'm solving for the present value equals pv open parens and then go up here to the fx button rate number periods payment future value hit okay and again i highlight the one i just solved so that's the e