is the no of periods 36 here cause here its written he will have 100000 at the end of 35
and do we have to use bgn mode first with n = 21 and then end mode with n= 14 ??
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Firstly pull 50000 and 100000 to be left in the bank account at T15 using, FV100000, PMT50000, N20, I/Y7, CPT=PV-555543.
Now pull this value at T0 using, N14 (As from end mode PV comes at T-1), I/Y7
Answer will come option B.
I hope it helps.
the pv 555543 is coming when is enter n=21 and use BGN mode
second step is same
There is no need to use bgn mode. The payments are starting at end of 15th yr. so use end mode only, you will get pv at end of 14th year. Do discountfor 14 years you will get pv today