austenr
11-29-2005, 01:04 PM
OK I am trying to use this function and am not sure I am getting the correct answer. My scenerio:
I have an investment of 20,000,000.00. I need to know if it is paid out to the individual in 20 equal installments, what is the difference between drawing it on the first part of the year verses the last part of the year. I have tried two different formulas ans cannot decide which is correct. They are:
=PV(5%,20,1000000,0,0) for the beginning of the year
and =PV(5%,20,1000000,0,1) for the end of the year
the rate is 5% per year
my answer was 12,462,210.34 for the beginning of the year and
13,085,320.86 for the end of the year
just does not sound right to me. Can someone double check it for me? Thanks
I have an investment of 20,000,000.00. I need to know if it is paid out to the individual in 20 equal installments, what is the difference between drawing it on the first part of the year verses the last part of the year. I have tried two different formulas ans cannot decide which is correct. They are:
=PV(5%,20,1000000,0,0) for the beginning of the year
and =PV(5%,20,1000000,0,1) for the end of the year
the rate is 5% per year
my answer was 12,462,210.34 for the beginning of the year and
13,085,320.86 for the end of the year
just does not sound right to me. Can someone double check it for me? Thanks