document.write( "Question 1173379: Determine the present value of a series of 36 monthly payments of $5,000 each which begins 1 month from today. Assume interest of 18 percent per year compounded monthly. \n" ); document.write( "
Algebra.Com's Answer #799493 by Theo(13342)\"\" \"About 
You can put this solution on YOUR website!
you can use the financial calculator at \r
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\n" ); document.write( "\n" ); document.write( "inputs to this calculator are:
\n" ); document.write( "fv = 0
\n" ); document.write( "np = 36
\n" ); document.write( "pmt = -5000
\n" ); document.write( "ir = 18/12 = 1.5
\n" ); document.write( "payment at end\r
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\n" ); document.write( "\n" ); document.write( "click on pv to get:
\n" ); document.write( "pv = 138,303.42\r
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\n" ); document.write( "\n" ); document.write( "your time periods are in months.
\n" ); document.write( "np = 36 months
\n" ); document.write( "ir = interest rate per time period.
\n" ); document.write( "you takre 18% per year and divide it by 12 months to get 1.5% permonth.
\n" ); document.write( "payments are normally made at the end of each time period.
\n" ); document.write( "that's why payment at was set to end.
\n" ); document.write( "pmt is payment per time period.
\n" ); document.write( "it is negative to make the present value positive.
\n" ); document.write( "if it was positive, the present value would be negative.
\n" ); document.write( "that's a cash flow convention that doesn't impact the absolute value of the results.
\n" ); document.write( "you would get the same present value, only negative, if you entered the payment per time period as positive.\r
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\n" ); document.write( "\n" ); document.write( "here's a display of the results from using the online calculator referenced above.\r
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