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Homework Help: Finding the Present Value Compounded Monthly

  1. Mar 6, 2006 #1
    Let present value be PV
    PV=R x (1 + i)^-n / i

    This is what i did.
    PV = 38400 x (1 - (1 + 0.06/12)^-48)/ 0.06/12
    PV = 7 680 000 x 0.21290588
    PV = 1 635 084

    Is there any complication / error?
     
  2. jcsd
  3. Mar 14, 2006 #2
    so the amount of INTEREST per month should equal the amount that needs to be paid per month.

    what is the amount per month? $38400 + GST + PST divded by teh number of months.

    calculate the amount u would need to invest if the interest it paid per month is equal to what u just got above. Also Carmen is investing the money AFTER the first payment so for how many periods will the interest be paying?
     
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