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Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 7, 2019 at 7:36 pm #504260
    iyamu
    Member
    • Topics: 275
    • Replies: 167
    • ☆☆☆

    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

    February 10, 2019 at 10:15 pm #504673
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6453
    • ☆☆☆☆☆

    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

    February 11, 2019 at 4:07 pm #504781
    iyamu
    Member
    • Topics: 275
    • Replies: 167
    • ☆☆☆

    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

    February 16, 2019 at 12:16 pm #505297
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6453
    • ☆☆☆☆☆

    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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