What is Texas top 10% rule?

How do i find the Present Value of 10 equal annual payment using a texas instruments calculators?

  • I am trying to find the PV of 10 equal annual payments of $10,000 to pay for a capital lease with an interest rate of 10% using a Texas instrument calculator (TI-84). Accroding to the book, the answer is 67,950. I tried the TVM solver with the following input N=10 I%=10 PMT=0 FV=100000 and i got the answer as 38,554, which is way off The person who is able to show me the procedure correctly will get 10 points. thanks

  • Answer:

    Why did you use 10,000 for the FV? That's the annuity amount. There is no FV. N 10, Rate 10%, PMT 10,000 Compute PV 61,445.67

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Seems to be something wrong with the book's instruction or your transcribing it. I use a HP12C, and if the PV=100,000 i$=10 N=10 then PV is 38554.32 Annual payment will be 6274.53 Your calculator is right. perhaps the book is wrong.

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