Question

Which of the following groups of values, when input into the TVM Solver of a graphing calculator, will yield the same value for PV as the expression ($505)((1+0.004)^60 - 1)?

Answer 1

To find the values that yield the same Present Value (PV) as the expression ($505)((1+0.004)^60 - 1), you can input different values into the TVM Solver of a graphing calculator.

Step-by-step explanation:

To find the values that yield the same Present Value (PV) as the expression ($505)((1+0.004)^60 - 1), we need to input different values into the TVM Solver of a graphing calculator.

Let's break down the expression:

($505)((1+0.004)^60 - 1) = $505(1.2587 - 1) = $505(0.2587) = $130.7185

So, we need to find values that, when input into the TVM Solver, result in a PV equal to $130.7185.

Example:

If we input the values

• N = 60 (number of periods)
• I% = 0.2587 (interest rate per period)
• PV = -130.7185 (present value)

into the TVM Solver of a graphing calculator, we will get the same value for PV as the expression ($505)((1+0.004)^60 - 1).