Use the following formula in cellD9. =PV(D6,D5,D8,D7) PressEnter. You will see the present value of the lump sum. Interpretation of the Result ThePVfunction returns us the present value of the lump sum -$7,835.26. As the function calculating the previous value of our future value,...
The lump-sum tax system is superior if there are no errors in classifying individuals but, when enough mistakes are made, income taxation may be the preferred system. Stern’s analysis recognizes that the two tax systems each have their own information requirements (the lump-sum system requires...
TVM FORMULAS DESCRIPTION FORMULA TI BA II+ EXCEL 1 Future Value – lump sum FVn=PV(1+i) N,I/Y,PV,PMT,FV =FV(Rate,Nper,Pmt,PV)Present Valueannuity