Answer:
Explanation:
You can enter the formula P(i/(1-(1+i)^-n)) into a calculator using the following steps:
Enter the value of P
Multiply by i
Divide by (1 - (1 + i)^-n)
If your calculator has a memory function, you can store the value of (1 + i)^-n in memory and recall it when necessary.
For example, let's say P = 1000, i = 0.05, and n = 10. Here are the steps:
Enter 1000
Multiply by 0.05 (resulting in 50)
Enter 1.05 (1 + 0.05)
Raise 1.05 to the power of -10 (resulting in 0.37689)
Subtract 0.37689 from 1 (resulting in 0.62311)
Divide 50 by 0.62311 (resulting in 80.289)
Therefore, P(i/(1-(1+i)^-n)) equals 80.289 when P = 1000, i = 0.05, and n = 10.