What is the present value of $4,000 per month for one year with an annual interest rate of 7.2% (APR with monthly compounding)?
APR = 7.2%
monthly rate = 7.2%/12 =0.6% = 0.006 = r
no of months = 12 = n
PMT = 4000
PV = PMT*(1/r)*(1-1/(1+r)^n))
PV = 4000*(1/0.006)*(1-1/(1+0.006)^12))
PV = 4000*166.6667*0.06926888 = 46179.26
Answer : 46179.26 [Thumbs up please]
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