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