Equivalent Annual Annuity

CFA Level II
#1

For some reason I cant seem to be able to get the right answer on my calculator. Does anyone know what the problem might be.

thank you

#2

PV must be the - NPV, FV = 0, I=discount rate, N= periods in question

Then 2nd + PMT = EAA

#3

1st press 2nd then press FV button to clear all TVM data then follow trogulj and you will find the correct answer.

#4

Sorry people, but for some strange reason my calculator is not getting it right.

example

EAAA: PV=20,000; N = 3: 1/Y = 12; CPT PMT-+ $8,327. EAAB: PV = 25,000; N = 5:

1/Y - 12; CPT PMT -+ $6,935.

Im getting 6800 for the first one and 5150 for the second one.

Any help would do. Thanks in advance

#5

Sorry people, but for some strange reason my calculator is not getting it right.

example

EAAA: PV=20,000; N = 3: 1/Y = 12; CPT PMT-+ $8,327. EAAB: PV = 25,000; N = 5:

1/Y - 12; CPT PMT -+ $6,935.

Im getting 6800 for the first one and 5150 for the second one.

Any help would do. Thanks in advance

#6

Did you set FV = 0?