Question

Question 5 of 10 Which of these groups of values plugged into the TVM Solver of a graphing calculator will return the same value for PV as the expression ($415)((1+0.003)24 - 1) ? (0.003)(1+0.003)24 OA. N=24; 1%-0.3; PV = ; PMT=-415; FV=0; P/Y=12; C/Y=12; PMT:END B. N=24; 1%-3.6; PV = ; PMT=-415; FV=0; P/Y=12; C/Y=12; PMT:END OC. N=2; 1%-0.3; PV = ; PMT=-415; FV=0; P/Y=12; C/Y=12; PMT:END ↓ OD. N=2; 1%-3.6; PV = ; PMT=-415; FV=0; P/Y=12; C/Y=12; PMT:END SUBMIT​

Answer 1

Option B. N=24; 1%-3.6; PV = ; PMT=-415; FV=0; P/Y=12; C/Y=12; PMT:END

Explanation:

The TVM (Time Value of Money) Solver on a graphing calculator is used to calculate the present value (PV) of an investment. The input values for the solver include the number of periods (N), the interest rate (I%), the present value (PV), the payment (PMT), the future value (FV), the payment frequency per year (P/Y), and the compounding frequency per year (C/Y). In this case, the expression ($415)((1+0.003)24 - 1) is equivalent to the future value of an investment that receives a payment of $415 every period for 24 periods, with an interest rate of 0.3% per period. By plugging in N=24, I%=3.6, PV=0, PMT=-415, FV=0, P/Y=12, and C/Y=12 into the TVM Solver with PMT as the payment type, the same value for PV will be returned as the expression ($415)((1+0.003)24 - 1).