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Monday, December 3, 2012

Compounding: Finding the Present Value of an Annuity


A typical compounding problem would be something like:

How much is the equivalent Present Value (P) if an investment pays an amount (A) every year at an interest rate (i) for an (n) number of years?

Enter the values in the text boxes below to solve for the Present Value (P):
Type in the Annual Payment Value (A):
Type in the Interest Rate (i) in terms of percentage:%
Type in the number of years (n):

Answer:

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