Question 1188034: Calculate the present value
Princial - P2,000
Interest rate - 6%
Made of payment - quarterly
Length of annuity - 10 years Answer by Theo(13342) (Show Source):
pv is positive because it's money coming in.
pmt is negative because it's money going out.
solution is that the payment required to satisfy the loan of 2000 is equal to 66.85 payable at the end of each month.
you asked to calculate the present value.
i think you meant to calculate the monthly payment required.
the present value is the principal amount of the loan.
it is possible that you meant that the payment at the end of each quarter was 2000 dollars.
in that case, your results are shown below.
inputs are everything except pv.
output is pv.
solution is that the present value of the loan is equal to 59,831.69.
one of these should be what you wanted.
in both cases, the interest rate per year is divided by 4 to get the interest rate per quarter and the number of years is multiplied by 4 to get the number of quarters.
