I am perplexed. The problem I am working on (using financial package in R) is ,
Question : How much money must Carol deposit every year starting 1 year from now at 5.5 % per year in order to accumulate $6000 seven years from now?
My correct solution is :
> 6000/usfv(5.5,7)
[1] 725.7865
I think this should also work... but does not:
> tvm(i=5.5,n=7,fv=-6000,pmt=NA,pyr=1)
Time Value of Money model
I% #N PV FV PMT Days #Adv P/YR C/YR
1 5.5 7 0 -6000 687.95 360 0 1 1
I am getting a difference PMT amount. Does anyone have an insight in why I a getting the difference