Lenny D. answered • 02/01/20

Financial Professional with many years of Wall Street Experience

PV = AMT(!/i)(1-(1/(1+I)^{N}

Here i= 5% AMT = 1,100 and N=3 So PV= 1,100(1/5%)(1+ (1/(1.05))^{3})

=1,100(20)(1-(.86384))=1100(20)(.13616) =2,995.57

It is a simple formula You could go to a simple loan table with i=5%, N=3 and get the payment factor and multiply by 1,100 which Is what we did here