The formula is:
\[
PV = P \times \left(1 - (1 + r)^{-n}\right) / r
\]
Where:
- \(PV\) = Present Value
- \(P\) = Payment amount per period
- \(r\) = Interest rate per period
- \(n\) = Total number of payments
Given:
- \(P = 8000\)
- Annual interest rate = 3.25%,
Show more…