Question

You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 6%, with interest paid monthly. What is the monthly loan payment? Do not round intermediate calculations. Round your answer to the nearest cent.

What is the loan's EFF%? Do not round intermediate calculations. Round your answer to two decimal places.

Present Value of an Annuity

Find the present value of the following ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent.

1. $200 per year for 10 years at 12%.

   $  

2. $100 per year for 5 years at 6%.

   $  

3. $200 per year for 5 years at 0%.

   $  

4. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

   Present value of $200 per year for 10 years at 12%: $  

   Present value of $100 per year for 5 years at 6%: $  

   Present value of $200 per year for 5 years at 0%: $  

Answer 1

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@v a W 00:16 - ENG | 1x 9 26 23-03-2020 ... o X AL1131 x fix : AJ AK AL AM AN AO AP AQ A CAR LOAN LOAN AMOUNT RATE MONTHLY RATE NO OF MONTHS 20000 6.00% 0.5000% 72 PVA = 20000 = 1111 1112 1113 1114 1115 1116 1117 1118 1119 1120 1121 1122 1123 1124 1125 1126 1127 1128 1129 1130 1131 1132 1133 1134 PMT* (1/r)*(1-(1/(1+r)^n)) PMT*(1/0.005)*(1-(1/(1+(0.005))^72)) PMT*60.33951394 331.46 20000 = MONTHLY PAYMENT ANSWER EFF = (1+(APR/m))^m - 1 EFF = (1+(0.06/12)^12 - 1 = ANSWER 6.17% ... pv, fv, annuity CAP STRU VALUE PM, PMT loan with points LOCK BOX DILUTION | DOLLAR COST AVG EXPO | NPER APR CPI ear FVA s2 pva : ... Đ :

' v W a ax 2 ENG - 00:19 | 23-03-2020 : x fix L M N O P Q R S T U R127 2 125 126 127 BA II PLUS SET C/Y = 1 P/Y =1 128 129 ORDINARY ANNUITY a THEN 10 130 131 132 133 134 N= I/Y = PMT= FV= CPT PV = 0 N= I/Y = PMT= 12. -200 -100 N= I/Y = PMT= FV= CPT PV = -200 FV = o 135 THEN 1130.04 CPT PV = 421.24 1000.00 136 137 138 ANNUITY DUE SET 139 BEG BY PRESSING "2ND", THEN PRESS "PMT", THEN AGAIN PRESS "2ND", THEN PRESS "SET" 140 141 THEN N= N= I/Y = PMT= FV= CPT PV = 10 12 -200.00 5 0 -200.00 142 143 144 145 146 147 148 -100.00 N= 1/Y = PMT= FV= CPT PV = 1/Y = PMT= FV = CPT PV = THEN 1265.65 446.51 1000.00 مه NPV BOND Sheet6 Sheet4 PV FV choice EAR nper WACC Sheet1 Sheet2 Sheet3 Sheet5 HERO WACC AFN ... +