It\'s a question about \"you receive a payment of $100 per year for 10 years. Yo

Question

It's a question about "you receive a payment of $100 per year for 10 years. You recieve the first payment one year from today. It's certain that you can receive the payment on time and interest rate is 10% er year".

The first method is from the basic: calculating the discount factors and multiplied by payments. The second one is using the PV on Excel. Why can't I match the number?!!

It's a question about "you receive a payment of $100 per year for 10 years. You recieve the first payment one year from today. It's certain that you can receive the payment on time and interest rate is 10% er year". The first method is from the basic: calculating the discount factors and multiplied by payments. The second one is using the PV on Excel. Why can't I match the number?!!

Explanation / Answer

The PV is accounting for the 10th payment twice

If you take $614.45 (D11) and add 38.55(D10), you get the result in E11

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