Help Please

[MY1FAMILY]

Hello,
I am having problems with the formula to use for this problem.


How much would you have to invest today to receive:
$10,000 per year for 5 years at 9%
$25,000 per year for 25 years at 8%

 

[Denis]

Hello,
I am having problems with the formula to use for this problem.
How much would you have to invest today to receive:
$10,000 per year for 5 years at 9%
$25,000 per year for 25 years at 8%

Are you attending math classes or doing this out of curiosity?

Anyhow, the formula is:
A = P(1 - f) / i where f = 1 / (1 + i)^n

A = Amount to be invested
P = Payment to be received each year
i = interest rate
n = number of years