Re: [NTLK] formulas:net present value?

From: Mark Ross (markr13_at_comcast.net)
Date: Fri Sep 27 2002 - 14:30:21 PDT


>
>>Mark Ross wrote
>>
>>N = 30 X 12 = 360 monthly payments
>>%i = 7/12 (or, 0.07/12 depending on how the calculations are handled) =
>>0.58%/month
>>PV = $100,000
>>
>>I feed these three into the calculator and I get back:
>>
>>PMT = -$665.30/month. Note the negative is a negative cash flow.
>>FV = $811,649.77 is the future value of the loan after 30 years.
>
>Negative. The future value of the loan after 30 years is zero, or close
>to it, if you have been making the payments.
>
>To solve for PMT you must have the other 4 variables.
>
>Likewise with FV.
>
Perhaps I stated this poorly. The future value is the value of money 30
years in the future from now. That will give the value at present vs.
the value in the future to the lender.

I don't need to enter 4 variables on my calculator (TI BA-II). Indeed,
if I enter the values above for N, %i and PV only, or enter for FV as
well, I get the same result for PMT.

Mark Ross
markr13_at_comcast.net

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