Find the present value (PV) of the annuity with each payment of $3500 at the end of each year for 3 years in an account that pays 6% compounded annually.

Answer 1

PV = 3500( 1.06^3 - 1)/.06
= ...

Answer 2

that'snot how you solve

Answer 3

hey I got 11,142.6 and it told me it was wrong. I am using educosoft.c for my math class so it lets you know if your answer is incorrect, so can you tell me what answer you get from the way you solve if it's the same as mine then you're are wrong. I truly need help with this problem

Answer 4

Sorry, I was using the "Amount" formula
should have been:

PV = 3500( 1 - 1.06^-3)/.06
= 9355.54

Answer 5

thanks for your help