I am in a dilemma ,am i solving the problem incorrectly or is the an error with the Ex 8 ans.
Ex:8 on pge 270 of the institute bk Volume -1 Ex says to find the PV of an investment of $1,00,000 for 6yrs at 8% the formula given is PV==FV(1+r)^-N i.e PV=1,00,000(1.08)^-6 ==$63,016.96 How i solve==> PV=1,00,000[1/(1.08)^6]==1,00,000(1/1.58687)==$63017.134 Now, i think i am making some mistake somewhere… which i m unable to figure out…if i try to solve this simple Ex using TI cal. i m able to get the precise answer… but if i break the equation and solve it there is a contrast in answer… Also, in the PV equation the N is in (-)minus sign……how are we suppose to equate ??
Humbly request to assist me ASAP….i’m stuck here ……guidance needed…