why can’t it be?
N=5 PV=-10,200,000 PMT= -55,000 FV = 15,000,000 ?
are you even reading the guideline answers before you POST?
Both ways are presented
Using the HP12-C calculator, the following figures are used in the calculation when
solving for
i:
N = 5, PV = 10,200,000, PMT = -55,000, FV = -15,000,000, compute i = 8.48%
or
N = 5, PV = -10,200,000, PMT = 55,000, FV = 15,000,000, compute i = 8.48%
Note: Salaries/expenses are a wash.
I think he misplaced the negative signs. Put all the outflows and inflows on different operative and you should be fine.
@ cpk123, let me ask did you even read my question before you RESPONDED?
I had already seen both the answers in guideline answers. My question was different, it had different signs for FV and PV
How do we infer these signs?
if there is a outflow, PMT=> negative
may be, I think, one good way will be to think if one is issuing a bond
so PV = +ve (initial inflow of principal )
PMT = -ve (outflow of coupons)
FV = -ve (final outflow of principal)
how are you guys tackling these signs ?
make sure your PMT and FV signs are the same and PV is opposite
thanks igor. could you explain why is that? am i missing something ?
i think you assume PV is inflow and PMT and FV are outflows and vice verse