No. of Recommendations: 0

*One way to deal with the bug is to create
a SIMPLE problem that you can easily examine
yourself and understand the results. For example,
the future value of an account with a present
value of $1 (an asset), an interest rate of 10%
per period, and a periodic deposit of $10, for
one period. You can do that in your head: the
proper result is $11.10. A result of -$11.10
is acceptable and understood. Anything else is
wrong. Once you get the signs right so you get
an acceptable result, you can then change the
inputs (but not their signs, except deliberately
changing to a debt) to reflect your actual problem,
and trust that you know the proper result.*
I like the explaination. I try to think more concrete.
If I put a dollar in savings (etc), it's cash
**outflow**- therefore it's negative. So, when I call
up future values, they will be positive.
Example:
n i PV PMT FV
12 10 0 -1 ?
FV = 21.38
Investing a dollar a month for 12 months (-1 PMT = cash
out) will equal 21.38 cash inflow after 12 months.
Just my .02
Stetson20