Samuel Brogden
New member
I have the question and the answer here and i want to know how they get the 1.07 as i was given this formula:
PV= 1/(1+R)n
imagine r=7% and n=3 years
invest on the 1st year = 700, 2nd=1000 and 3rd=300
Using the formula
[700/1.07] + [1000/(1.07x1.07)] + [300/(1.07x1.07x1.07)] = 1772.54
Where does the 1.07 come from?! Cheers
PV= 1/(1+R)n
imagine r=7% and n=3 years
invest on the 1st year = 700, 2nd=1000 and 3rd=300
Using the formula
[700/1.07] + [1000/(1.07x1.07)] + [300/(1.07x1.07x1.07)] = 1772.54
Where does the 1.07 come from?! Cheers