points www weh time value of money problems. There are three basic factors. 1 timing of cash flows: 1 Size of Cashflow: 3) Risk of cash Pows. Note the timing is associated with worrumber of periods seis associated with PV, IV. or Pit payment and risk is associated with the interest rate with any particular problem you might be asked to solve for PV IV. PUT No. Therefore part of a good problem solving Ses atempting to trafy these variables when you read a problem. Nate sometimes not all of the variables are gven. You may need to attura a les value which might be bro or other value based on the context of the question In the question below you are asked to compute payment this is a common cuttinin ince when you are computing the required payments on a loan ut a 10 year ordinary annuty has a present value of 59,686, and if the interest rate is percent what is the amount of each annuly payment