Projected annual pension: 8484 Number of years of pension pmt: 20 Discount rate: 7% I used my calculator BA II Plus to compute and got 89, 880 using the entries below N: 20 I/Y: 7 Pmt: 8484 Compute PV and got 89,880. But book has: Funds needed at retirement: 96,171 (Is this correct?) Am I doing anything wrong here? Can someone explain please
I don’t have that book on me but the calculation for their answer would be based on an Annuity Due. Change the setting on your calculator to BGN rather than End. Not sure the context of the question though.
Thanks. I got it. I was doing it as annuity as text says.