I have this problem to solve. I used the PV function in Excel, but the number
just doesn't seem right. When I calculate the same info on my TI-83 Plus, it
comes up with a completely different number. The problem is: "Show the
present value of 15 annual payments made to you, each payment being for
$2000. Assume that the interest rate is 7.5% per year and that the first
payment is made 12 months from today." When I calculate using the PV
function, the answer is $266.67. But when I calculate on the TI-83 Plus, I
get $17,654.24. What is it that I'm doing wrong? Which is correct? I have to
show the formula used in my spreadsheet. Any help would be greatly
appreciated.