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Author Question: The formula for the Future Value Interest Factor of an Annuity (FVIFA) is . Indicate whether the ... (Read 67 times)

hubes95

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on: Jul 10, 2018
The formula for the Future Value Interest Factor of an Annuity (FVIFA) is .
 
  Indicate whether the statement is true or false.

Question 2

The furniture store offers you no-money-down on a new set of living room furniture.
 
  Further, you may pay for the furniture in three equal annual end-of-the-year payments of 1,000 each with the first payment to be made one year from today. If the discount rate is 6, what is the present value of the furniture payments?
  A) 3,183.60
  B) 3,000.00
  C) 2,833.39
  D) 2,673.01


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deja

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE

Answer to Question 2

Answer: D
Explanation: D)
PV = PMT  = 1,000  = 2,673.01.
MODE = END
INPUT 3 6 ? -1,000 0
KEY N I/Y PV PMT FV
CPT 2,673.01


hubes95

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Reply 2 on: Jul 10, 2018
Wow, this really help

bdobbins

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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