- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #2 Answer
Using the formula, the calculation is:
PVn,i = Payment * [ 1–( 1/(1 + i)n )]/i = PV = 2,000 * [1–(1/(1.06)40] /.06 = $30,092.59
Using the financial calculator, the calculation is:
Clear memories and use the following:
1 = P/Y (payments per year)
2,000 = PMT (payment)
6 = I (interest rate)
40 = N (number of years)
Solve for PV = $30,092.59
