Question

TVM Assignment 0 • Otto Co, borrows money on April 30, 2019, by promising to make four payments of $19,000 each on November 1, 2019, May 1, 2020, November 1, 2020; and May 1, 2021 PV of S1, FV S1, PVA of S1, and FVA of 50 (Use appropriate factor(s) from the tables provided Round "Table Factor" to 4 decimal places.) 1. How much money is Otto able to borrow if the interest rate is 4%, compounded semiannually! 2. How much money is Otto able to borrow the interest rate is 8%, compounded semiannually? 3. How much money is Otto able to borrow if the interest rate is 10%, compounded semiannually? Complete this question by entering your answers in the tabs below. 1. - Required 1 Required 2 Required 3 How much money is Otto able to borrow if the interest rate is 4%, compounded semiannually? Periodic Cash Flow Table Factor Present Value Required 2 >

Answer 1

G H A B 1 Payements 19000 2 Period Semi annually 3 No.of Years 2 4. Interest 0.04 5 Interest 0.08 6 Interest 0.1 E F. If the interest rate is 4% Table Factor X =1/POWER(1.04,4) Periodic Cash Flow =$B$1 = = Present Value =D3*F3 Periodic Cash Flow =$B$1 If the interest rate is 8% Table Factor X =1/POWER(1.08.4) Present Value =D7*F7 000 10 11 12 = If the interest rate is 10% Table Factor X =1/POWER(1.1,4) Periodic Cash Flow =$B$1 Present Value =D11*F11

G H A B 1 Payements 19000 2 Period Semi annually 3 No.of Years 2 4. Interest 0.04 5 Interest 0.08 6 Interest 0.1 E F. If the interest rate is 4% Table Factor X =1/POWER(1.04,4) Periodic Cash Flow =$B$1 = = Present Value =D3*F3 Periodic Cash Flow =$B$1 If the interest rate is 8% Table Factor X =1/POWER(1.08.4) Present Value =D7*F7 000 10 11 12 = If the interest rate is 10% Table Factor X =1/POWER(1.1,4) Periodic Cash Flow =$B$1 Present Value =D11*F11

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