Lecture Notes on Time Value of Money

The above assumes the END mode. If the calculator is set in the BEGIN mode, it calculates an annuity due. Problem. What is the present value of an annuity of five annual $800 payments discounted at 10%? The first payment is due in one-half year from today. 800 x (1.10)1/2 xPVIVA10%,5 = 800 x(1.04881)x 3.79079 x = 800 x 3.97581 = 3,180.7 Try the following practice questions: Review Problems. 1 ... ................
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