document.write( "Question 259978: Find the present value of the following ordinary annuity.\r
\n" ); document.write( "\n" ); document.write( " Monthly payments of $274.14, 48 months, 12% compounded monthly.
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Algebra.Com's Answer #191412 by nerdybill(7384)\"\" \"About 
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Find the present value of the following ordinary annuity.\r
\n" ); document.write( "\n" ); document.write( " Monthly payments of $274.14, 48 months, 12% compounded monthly.
\n" ); document.write( ".
\n" ); document.write( "PV = PMT [(1 - (1 / (1 + i)^n)) / i]
\n" ); document.write( "PV is present value
\n" ); document.write( "PMT is the payments
\n" ); document.write( "i is the interest rate
\n" ); document.write( "n is number of payments
\n" ); document.write( ".
\n" ); document.write( "PV = PMT [(1 - (1 / (1 + i)^n)) / i]
\n" ); document.write( "PV = 274.14 [(1 - (1 / (1 + .12)^48)) / .12]
\n" ); document.write( "PV = 274.14 [(1 - (1 / (1.12)^48)) / .12]
\n" ); document.write( "PV = 274.14 [(1 - 1/230.39) / .12]
\n" ); document.write( "PV = 274.14 [(1 - 0.0043)/ .12]
\n" ); document.write( "PV = 274.14 [0.9957/ .12]
\n" ); document.write( "PV = 274.14 [8.2972]
\n" ); document.write( "PV = $2274.58\r
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