Which "ending" numbers? Do you mean the values in the PV column?
They simply multiplied column 2 (Amount) by column 3 (PV 10%) value. Note: They used the value before rounding.
Example:
Year 1, Amount = 250,000, PV 10% = 1/1.1 = 0.90909090...
PV column:
250,000 * 0.90909090... = 227272.727272...
= 227,272.73
Year 2, Amount = 250,000, PV 10% = 1/(1.1)^2 = 0.82644628...
250,000 * 0.82644628099... = 206611.5702...
= 206,611.57
As for the number at the end of each table, it's just the sum of the PV column.
Copyright © 2024 1QUIZZ.COM - All rights reserved.
Answers & Comments
Which "ending" numbers? Do you mean the values in the PV column?
They simply multiplied column 2 (Amount) by column 3 (PV 10%) value. Note: They used the value before rounding.
Example:
Year 1, Amount = 250,000, PV 10% = 1/1.1 = 0.90909090...
PV column:
250,000 * 0.90909090... = 227272.727272...
= 227,272.73
Year 2, Amount = 250,000, PV 10% = 1/(1.1)^2 = 0.82644628...
PV column:
250,000 * 0.82644628099... = 206611.5702...
= 206,611.57
As for the number at the end of each table, it's just the sum of the PV column.