Solve the following problem.
n equals 24​; iequals 0.021​; PMT equals $ 190​; PV equals question mark
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Part 1
PV equals $

enter your response here ​(Round to two decimal​ places.)

To find the present value (PV), we can use the formula for the present value of an annuity:

\[
PV = \frac{PMT \times \left(1 - (1 + i)^{-n}\right)}{i}
\]

where:
- $ PMT = 190 $ (the payment amount),
- $ i = 0.021 $ (the interest rate per period),
- $ n = 24 $ (the number of periods).

Let's calculate this step by step:

1. Calculate $ (1 + i)^{-n} $:
   \[
   (1 + 0.021)^{-24}
   \]

2. Subtract this value from 1.

3. Multiply by $ PMT $.

4. Finally, divide by $ i $.

Let me calculate this for you.The present value (PV) is approximately $3553.27 when rounded to two decimal places.

Would you like more details or have any questions about this calculation?

Here are some related questions you might find useful:

1. How does the interest rate affect the present value of an annuity?
2. What is the future value of this annuity after 24 periods?
3. How would the present value change if the interest rate were higher?
4. What if the number of periods $ n $ was increased to 30?
5. Can the present value formula be applied to loans?
6. How does the formula for the present value of an ordinary annuity differ from that of an annuity due?
7. What if the payments were made quarterly instead of monthly?
8. How would you calculate the present value if the payments were not equal?

**Tip:** Always double-check whether you're dealing with an ordinary annuity or an annuity due, as the present value formulas differ slightly.

Learn how to calculate the present value (PV) of an annuity with a $190 payment, using an interest rate of 2.1% over 24 periods. Understand the formula and steps involved in determining PV. Suitable for higher education and finance professionals.

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