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Financial Mathematics Old FM Forum

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Old 08-07-2017, 03:08 PM
Futon Futon is offline
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Default PV and FV conversion





Why am I getting different answers? Are these two setups not equivalent?

EDIT: Changed minus to plus

Last edited by Futon; 08-07-2017 at 03:41 PM..
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Old 08-07-2017, 04:39 PM
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61703.98 * (1.02)^12 * (1.015)^8 = 88154.33
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Old 08-07-2017, 04:40 PM
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Idk what the setup of the problem was, so that's the best I've got. Looks like you calculated PV but they calculated FV
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Old 08-07-2017, 04:44 PM
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Thank you
Edit: Yep for the entire problem they used FV and I used PV. I thought this step was the reason why I got the wrong answer but it wasn't. It was another algebraic carelessness. Thanks for clearing it up.
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Old 08-07-2017, 05:06 PM
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