B22 Increasing Annuity- Arithmetic

Question 1

what is the formula for the present value of an n-year anrithmetic increasing annuity-immediate with payments of 1, 2,…,n?

Answer 1

(Ia) angle n at a rate of i = (ä angle n at a rate of i - n*v^n
)/i

Question 2

How can you quickly evaluate the expression ä angle n - n*v^n using the TVM functions on the calculator?

Answer 2

[2nd] BGN
N=n
I.Y = 100i
PMT = 1
FV= -n
CPT PV
signs on PMT and FV must be different here