Future value? "You decide to purchase an investment that will pay you $4000..."

[SweetPete]

Future value? "You decide to purchase an investment that will pay you $4000..."

"You decide to purchase an investment that will pay you 4000 dollars each year for the next 20 years. If this investment returns 6%, how much should you be willing to pay for it?"

Is this a future value interest factor annuity (fvifa) situation? I believe so because you would be forking out money for a future value return. I may be way off, but that's why I'm here.

Thanks

 

[DexterOnline]

That's the Present Value of an annuity; formula:
P = A * [(1 + i)^n - 1] / i

P = Present value (?)
A = annuity amount (4000)
n = number of periods (20)
i = interest per period (.06)

P = A * [1 - (1 + i)^(-n)] / i

Seems like Sir Jonah and Sir Denis were together drinking Smirnoff last night

 

[jonah2.0]

Beer soaked ramblings follow.

P = A * [1 - (1 + i)^(-n)] / i

Seems like Sir Jonah and Sir Denis were together drinking Smirnoff last night

Nay Sir Dexter, I say nay. I say simple inattention to a minor detail (probably brought about by Sir Denis answering a question without his preferred beverage running through his veins) was Sir Denis' sin.
Sir Denis' minor error aside, the bigger question is why the adaptation of a "standard" notation of a well known financial formula which you detest so much? Is it possible that you yourself were intoxicated (hopefully with absinthe) when you posted without using your own delightful notation?

 

[DexterOnline]

Sir Denis' minor error aside, the bigger question is why the adaptation of a "standard" notation of a well known financial formula which you detest so much? Is it possible that you yourself were intoxicated (hopefully with absinthe) when you posted without using your own delightful notation?

I was stoned to debt when writing my reply. Local law

About my version of the financial formulas

Please consult many amendments to Book of Odd

https://www.dropbox.com/sh/jc13o74p9i2xxv1/AAA6V72t6-ntqUW0BpV_FBgua?dl=0

0th amendment: Valuation function V leads to 1,700 TVM formulas

1st amendment: Valuation function V leads to 3,620 TVM formulas

2nd amendment: Valuation function V leads to 7,400 TVM formulas