Question

How do you solve these? thanks in advance :) 2.)With an interest rate of 4 percent,...

How do you solve these? thanks in advance :)

2.)With an interest rate of 4 percent, what is the present value of $181 to be received next year? Round your answer to at least 2 decimal places.

3.)With an interest rate of 3 percent, what is the present value of $159 to be received in two years? Round your answer to at least 2 decimal places.

4.)If an instrument pays $131 in one year and $194 in three years, what is the present value of the instrument if the interest rate is 7%?

14.)If a $1,000 face value coupon bond has a coupon rate of 3.86 percent, what is the coupon payment (in $) every year?

15.)If the amount payable in two years is $2,372 for a simple loan at 4 percent interest, what is the loan amount (in $)? Round your answer to at least 2 decimal places.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

2)
Present value can be calculated by using the following excel formula:
=PV(rate,nper,pmt,fv)
=PV(4%,1,0,-181)
= $174.04

3)
Present value can be calculated by using the following excel formula:
=PV(rate,nper,pmt,fv)
=PV(3%,2,0,-159)
= $149.87

Post the rest of the questions separately.

Thank you...

Add a comment
Know the answer?
Add Answer to:
How do you solve these? thanks in advance :) 2.)With an interest rate of 4 percent,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT