Finite Math Examples

, ,
Step 1
Present value is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk.
Step 2
Substitute the values into the formula.
Step 3
Simplify the right side.
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Simplify .
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Simplify the denominator.
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Convert to a decimal.
Add and .
Raise to the power of .
Divide by .
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