1. ## calculation problem

I'm trying to solve the following, but I'm doing something wrong in the calculations.

PV = Pmt(1-(1 = i)^-n) / i

497.98(1 - (1 + .06)-60)/ .06

497.98(1 - ( - 58.94) / .06

497.98(59.94) / .06

497.98(999) ??

2. Originally Posted by hansfordmc
I'm trying to solve the following, but I'm doing something wrong in the calculations.

PV = Pmt(1-(1 = i)^-n) / i

497.98(1 - (1 + .06)-60)/ .06

497.98(1 - ( - 58.94) / .06
i don't know how you got this.

497.98(59.94) / .06

497.98(999) ??
$
497.98\times\frac{1 - (1 + .06)^{-60}}{0.06}=8048.067769
$

3. I can't figure out how you got that answer. Would you please break down the calculations. I'm plugging -1.06 ^-60 in the calculator and getting 59.94

4. $1-(1+.06)^{-60}=1-(\frac{1}{1+.06})^{60}=1-\frac{1}{32.9876}=1-.03031=.9697$ Do the rest.

I'm plugging -1.06 ^-60 in the calculator and getting 59.94
What calculator are you using? Do not use Window's default calculator in this purpose. Use a scientific calculator to calculate -1.06^-60 or simplify as shown.

5. gotcha - thanks