What is the present value (or purchase price) of an annuity product which will pay you $2,500 at the end of each year for the next 14 years? Use a discount rate of 9.75%.
My calculator (TI BA 2+) is set to 1 P/Y and is set to payments at the end of the time interval.
Here are the keystrokes I'm entering:
2500 PMT 14 N 9.75 I/Y CPT PV
I know the right answer is $18,670 (as calculated on my other trusty HP 10B2 calculator), but my TI BA 2+ calculator shows -19,350, which is NOT the right answer. My question isn't so much how to find the right answer, but how to make my calculator show me the right answer... what settings am I missing or is there a different way to enter the info? What am I missing?
Thanks in advance!