Present Value of Annuities
Use this sketch to investigate present value in three types of situations
NOTE: Because the scale of numbers tends to be significantly different from question to question, you are advised to use the input bar at the bottom to enter the information from your question.
Instructions/Examples
For R, n, and PV:
Type "R = 10600" (without quotes) to set the value of R to 10600.
Type "n = 180" (without quotes) to set the value of n to 180
Type "PV = 375000" (without quotes) to set the value of PV to 375000
For i, use the annual interest rate as a decimal--so if I want to use 8.4%/a, I will type
"i = 0.084" (without quotes)--the compounding will be taken care of by using the "compound frequency" slider
To increase the potential maximum value of n (suppose you are doing a daily or weekly compound question), right click the slider and alter the maximum value to suit your equation. 25 years is 1300 weeks or 9125 days for reference.
J. McMullan, Created with GeoGebra |