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4. Mr. Jones is in debt. He owes Mr. James an amount of $235,000. To repay this debt he is to pay an amount of X for the next 7 years and an amount of 2X for the following 15 years. All payments are made at the end of the year. The annual interest rate is 12%. Calculate X.

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Home nert Page Layout Formulas Data Review View dd-Ins as Cut Σ AutoSum ー E ゴWrap Text General в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard GC100 FS Font Alignment Number Styles Cells Edting FT FU FV FW FY FZ GA GB GD GE 94 95 96 97 98 IT IS A MIX CASE OF PRESENT VALUE OF ANNUITY AND PRESENT VALUE TABLE 235000-(X) PVI FA @ 12% FOR 7 YEARS + (2x)*(PVIFA@ 12% FOR 15 YEARS)( PVIF@ 12%, 7 YEARS) 235000X)4.564 (2X) 6.811*0.452 2350004.564 (X) 6.157144(X) 235000 10.721144(X) 235000/10.721144 100 101 102 103 104 105 106 107 108 109 110 21919.30 NOTEALL VALUES ARE TAKEN FROM TABLES 3 DECIMALS ARE TAKEN EXCEL IF WE USE EXCEL, TAKE FULL VALUES, NO ROUNDING IS DONE ANSWER WILL BE DIFFERENT 235000X)4.563757(2X)*6.810864*0.452349 235000 10.725535(X) NOTE PVIFA 1296,7 YEARS PVI FA 12%, 15 YEARS = PVIF 12%, 7 YEARS= EXCEL 21910.33 4.563757 PV(1296,7,-1) 6.810864 PV(12%,15-1) 0.452 349 PV(12%,7,-1) 112 CALCULATOR | LOAN OPTIONS CAP STRU VALUE LOCK BOXDILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2She 05:58

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