FIN 3414, Fall Insert Page Layout Formulas Data Review View X out Helvetica10 A-A Formatting as 1 COMPUTING THE VALUE OF A GROWING ANNUITY 3 Periodic Payment, P 4 Payment Growth, g 5 Discount Rate, r 6 Number of Periods, n 1000 12% 8 Find the value of the annuity usi 9 Annuity Formula Hint: The formula for the present value of an annuity paying a constant periodic payment P at an interest rate of r for n periods is given by PVA(Pr, g, n) =-11 1+g 1+r Year Cash flow 1 $1,000.00 2 1,060.00 3 1,123.60 4 s 1,191.02 5 $1,262.48 r-g 12 13 14 15 16 17 18 Find the present value of the annuity using: 19 Using NPV function Hint: Use the cash flows in the above table as inputs to the NPV function. 21 23 24 25 26 27 28 29 31 32 34