Question

In: Finance

Please explain the variables- PV, FV, N, PMT, I/Y, C/Y, and P/Y. Can you please write...

Please explain the variables- PV, FV, N, PMT, I/Y, C/Y, and P/Y.
Can you please write equations that connect these variables?
Can you please write equation for the arithmetic progression annuity?

Solutions

Expert Solution

Part A

Variable

Meaning

“N”

Total number of payments periods

“I/Y” or "i"

Annual interest rate

“PV”

Present Value

“FV”

Future Value

“PMT”

Payment amount
"P/Y" Payments per year
"C/Y" Compounding per year

Part B. For an ordinary annuity, these variables can be related as below in the equation

Part C.

jeff jeffy answered 1 year ago
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