Question

what is the discounted value of the stream of payments: $1250 received at the end of every month for 3 years and 2 months? Interest is 2.75% compounded monthly.

Answer 1

$ 45,440.71

Present value of cash flow	=-pv(rate,nper,pmt,fv)
	= 45,440.71
Where,
rate	=	2.75%/12	=	0.002291667
nper	=	(3*12)+2	=	38
pmt			=	1,250
fv			=	0
Alternatively
Present value of cash flow	=	Monthly cash flow	*	Present value of annuity of 1
	=	1,250.00	*	36.35256643
	=	45,440.71
Working:
Present value of annuity of 1	=	(1-(1+i)^-n)/i		Where,
	=	(1-(1+0.00229)^-38)/0.00229		i	=	0.002291667
	=	36.35256643		n	=	38
Note:
Any intermediate calculation have not been rounded off.