A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • one year ago

What is the C in this formula? PVOA = C(1/i - 1/i(1+i)^nt) How do you find C though?

  • This Question is Closed
  1. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    @jim_thompson5910

  2. jim_thompson5910
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    C is the cashflow I think?

  3. jim_thompson5910
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    basically how much is paying in or out per period

  4. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Yeah. Ok so this is the question. Madison has an annuity that pays $9,003 at the beginning of each year. If the economy grows at a rate of 3.4% each year, what is the value of the annuity if she received it in a lump sum now rather than over a period of 9 years? So C would be $9,003?

  5. jim_thompson5910
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    Sounds like an annuity due instead of an ordinary annuity. The difference between the two is that the annuity due is paid at the beginning of the period

  6. jim_thompson5910
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    and yeah C = 9003 is the amount of money she gets per year it is the cash flowing to her

  7. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Oh ok. Cool! Thanks!! :)

  8. jim_thompson5910
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    you're welcome

  9. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.