- I've already done this problem but I was having trouble with it in terms of where each value would go in the excel formula [=PV(rate,nper,pmt,fv,type)]. I think it's because I'm confused on which perspective it's in (person making the payments or receiving the payments).

9. Suppose you are going to receive $8,000 per year for 7 years. The appropriate interest rate is 9 percent. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due