Hi Rick as you said
Quote:
Originally posted by Rick Latona
I don't understand your formula but that is only because of my poor math skills.
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So here it is again just for you
The numbers that you see in my formula are present value, if you want to know the value in the end of the period you need to use a deferent Formula, but it doesn't mater any way, because you need to know what is the best offer, and the best way to check it out is by using the present value of the offer.
there is no logic in checking what will be the value of a in another 40 years and to comper it to the value of b in another 18 years.
You need to bring bouth offers to the same date, and that is why you are useing the present value formula.
you can trust me, I have an MBA from Wharton