Long description

A B
1 Present Value of an annuity due.
2 Annual annuity payment 700 dollars
3 Annual rate of interest 4 percent
4 Number of years 5
5 Future value negative 3,240.93 dollars
Entry in Cell B5 is equal to sign PV(B3,B4,B2,0,1). The minus sign appears before the 3,240.93 dollars in B5 because the annuity's present value is a cost and therefore a cash outflow.

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