sale and leseback — OpenTuition Forums

CChris7y ago

where on earth can 1,000,000 * 7.722 = 7721735? CAN YOU PLEASE EXPLAIN THIS MAGIC Sorry i have to disagreed with you because you said in your video that you have already calculated on your calculator. PV of $100,000 using DF of 10 years 5% . Anuity table give 7.722 the answer is supposed to be $7,722,000

P2-D2Tutor7y ago#1

Hi, Work out a 5% annuity for 10 years on your calculator, and you'll see that I've just not rounded it. I HOPE THAT EXPLAINS THE MAGIC. DON'T STRESS! Thanks

CChris7y ago#2

Chris thanks for your response but the figure there on the table is 7.722 so when multiplied by $100,000 the answer becomes = $ $7,722,000. So i did not know how yours where $7,721735. So i feel confused here

P2-D2Tutor7y ago#3

Hi, Have you worked out the annuity factor as mentioned above? Work it out and it will ease your confusion. Thanks

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