[bezanija]

Thank you for this reply , I have been confused with calculating PV using this formula , most of the time I like to use tables to get present values . Another thing that I have been questioning myself is the second part of this question or I could say an answer , the calculation of the interest have been done getting the figure of 23.41 and at par value of 56.19 and the question is what is the value in July 1st . Answer goes like this

(23.41+59.19) / 1.0296 = 80.23

Without any explanation how did they get to the figure of 1.0296
I get that 23.41+59.19 is the present value at the October 2005 and we want the present value in July 1 that is three months in reverse , how did they get to the figure of 1.0296 I really cant figure it out

Please Help

Thanks

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