I dont understand why we divide the presnt values of the annuity to cancel out the v^3n.

is this a rule or a formula im missing. please show work if possible thanks for your help!

this is an annuity, please use formulas At a certain interest rate i, they give you the following: a) The present value of an annuity due with annual payments of 1 for n years is 40 . b) The present value of an annuity-immediate with annual payments of 1 for 3n years is 70 . Calculate the accumulated value of an annuityimmediate with annual payments of 1 for 2n years. Show full question Expert answer This solution was written by a subject matter expert. It's designed to help students like you learn core concepts. A Anonymous Solution: We have: an=40,aje=70 ana3n=1+vn+v2n=4070v2n+vn43=0