I am having problems remembering how to solve negative exponents. My problem is as follows:
Find present value of an annuity with payments of $600 per year, for 12 years at 6% interest compounded annually.
The equation: P= 600 [1-(1+0.06)^-12/0.06]
I know the first step is to add 1+0.06 and then find 1.06 to the -12 power. However, I can't remember how to figure negative problems. I know I could put 1.06 on the bottom with the 0.06 to make the -12 a +12, but I can't seem to get the right answer. Please, help!
Find present value of an annuity with payments of $600 per year, for 12 years at 6% interest compounded annually.
The equation: P= 600 [1-(1+0.06)^-12/0.06]
I know the first step is to add 1+0.06 and then find 1.06 to the -12 power. However, I can't remember how to figure negative problems. I know I could put 1.06 on the bottom with the 0.06 to make the -12 a +12, but I can't seem to get the right answer. Please, help!