Homework Answers
P = Cash Flows
r = rate of Interest
n = no of years
| Annuity PV Factor = | P [ 1 - ( 1 + r )^-n ] |
| r | |
| Annuity PV Factor = | 7500 * ( 1 - ((1 / (1 + 6%)^12))) |
| 6% | |
| Annuity PV Factor = | 3772.729773 |
| 0.06 | |
| Annuity PV Factor = | $ 62878.83 |
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