Hi there
The formula of the present value of annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv ?
PMT payment per month
R interest rate
K compounded monthly 12 because the payment is monthly
T time
For the first question
Pv=425×((1−(1+0.055÷12)^(−12
×1))÷(0.055÷12))=4,951.26...answer
For the second question
Pv=315×((1−(1+0.06÷12)^(−12
×2))÷(0.06÷12))=7,107.30....answer
Good luck!
