# Present Value assistance.....

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…

Just do 1/(1.08^6) then multiply by 100,000 if you really wanna do it this way but why would you ever not just use the calculator key in. Also I did it your way and got their answer so maybe something with decimal settings on your calc is off.