Solve for PV

[carleymachado]

R=400
i=0.04
n=20

PV=R[1-(1+i)^-n]
____________
i

I have the first two steps that I know are correct:

PV=400[1-(1+0.04)^-20]
_________________
0.04

=400(1-1.04^-20)
______________
0.04

I am getting confused at the negative base and exponent, if somebody would be able to explain this equation to me step by step that would be awesome.

I also know that the answer is 5436.13

 

[Deleted member 4993]

R=400
i=0.04
n=20

PV=R[1-(1+i)^-n]
____________
i

I have the first two steps that I know are correct:

PV=400[1-(1+0.04)^-20]
_________________
0.04

=400(1-1.04^-20)
______________
0.04

I am getting confused at the negative base and exponent, if somebody would be able to explain this equation to me step by step that would be awesome.

I also know that the answer is 5436.13

.

1.04^(-20) = 0.456387