2006-07-25 05:49:23 · 3 answers · asked by Kevin C 1 in Business & Finance ➔ Investing
I could answer this but I'd rather teach you to fish...
Buy a TI-BA II Plus calculator. It has the time value of money keys and will do these calculations very quickly.
2006-07-25 05:54:38 · answer #1 · answered by bigtony615 4 · 0⤊ 0⤋
The KEY here is that you're doing a Present Value calculation. Present value is how much money received in the future is worth "today."
In Microsoft Excel, there's a PV (present value) function that you could use. Enter 10% or 0.1 as your rate, 19.50 as your payment amount, and 40 for time (NPER).
Doing this would give you $190.69. FYI, Excel will give you the answer as a negative. Just drop the negative sign!
2006-07-25 16:41:51 · answer #2 · answered by msoexpert 6 · 0⤊ 0⤋
$190.69
Enter the formula in Excel: =PV(0.1,40,19.5)
2006-07-25 06:38:24 · answer #3 · answered by Jimbo 1 · 0⤊ 0⤋