Question

what is meant by (p/a, 7%, 10)
(P/F,7%, 10)
how to calculate. give there values

Answer 1

(p/a, 7%, 5) means Present value of annuity of 5 uniform payments of 1 each per period (like month, quarter, year etc), at the interest rate of 7% per period

It is calculated using the formula PVA= [1-(1+r)^-n]/r

Where

n= Number of payments (in the given case, n=5) and

r= Interest rate (in the given case, r= 7%).

(P/F, 7%, 5) means Present value of 1 to be received or paid in 5 uniform periods (like month, quarter, year etc), discounted at 7% per period

It is calculated using the formula PV= 1/(1+r)^n

Where

n= Number of payments (in the given case, n=5) and

r= discount rate (in the given case, r= 7%).