#30 is what i need help on 2.30 Compute the present worth of the principal and...
Find the present worth of $4000 the first year, increasing by $1000 per year. The interest rate is 8%, and n equals 5. Draw a cash flow diagram and show your work. A lottery pays the winner $1 million, in 20 equal payments of $50,000. The payments are received at the end of the year, and the winner's interest rate is 12%. What is the present worth of the winnings?
Question Help The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid balance, P, is given by the formula below where PMT is the regular payment amount is the annual interest rate, n is the number of payments per year, and is the number of years remaining in the loan. Complete partsa and b. below PPMT Multiply both sides of the loan payment formula by b. The price of a car...
need help thanks!
Suppose that you have just borrowed $250,000 in the form of a 30 year mortgage. The loan has an annual interest rate of 9% with monthly payments and monthly compounding. a. What will your monthly payment be for this loan? b. What will the balance on this loan be at the end of the 12th year? How much interest will you pay in the 7th year of this loan? d. How much of the 248th payment will...
*** I NEED HELP WITH THE INTEREST/PRINCIPAL PRESENT
VALUES & PRICE OF BONDS *****
Complete the below table to calculate the price of a $1.1 million bond issue under each of the following Independent assumptions (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars.): 1. Maturity 15 years, Interest paid annually, stated rate 8%, effective market) rate...
I need the payments, interest in payments, principal repaid,
prinicipal owing at end of year for both
year 1 and 2.
Hep You borrow $400,000 to buy a house over a 25-year term. The loan is structured as an amorrtized loan with anmual payments and an interest rate of 11% Complete the cells in the amortization schedule, below Interest in Principal Principal Owing at End of Year ($) Year Payment (S) Repaid (5) Payment () 1 Principal Repaid () Interest...
The present worth of an uniform gradient decreasing series cash flow is KD 7000 . If the interest rate is 10% per year compounding annually and 8 annual payments with first payment is 1250 , calculate the g (decreasing amount)
Page 2 of 6 Problem 2 A certain U.S. Treasury bond that matures in 15 years has a $10,000 face value. This means that the bondholder will receive $10,000.00 cash when the bond's maturity date is reached. The bond pays an annual nominal interest of 8% of its face value in semi-annual installments starting at the end of the 1st semi-annual period. a) Draw a cash flow diagram showing bond payments. b) What is its present worth. PW, ifthe prevailing...
Problem 1: Determine the future worth of ten (10) payments starting with an initial $500 payment and increasing by a constant amount of $250 each year thereafter in an account that yields a nominal annual interest rate of 3.0%. Draw the Cash Flow Diagram: Write the Economic Formula:
Problem 1: Determine the future worth of ten (10) payments starting with an initial $500 payment and increasing by a constant amount of $250 each year thereafter in an account that yields a nominal annual interest rate of 3.0%. Draw the Cash Flow Diagram: Write the Economic Formula: Solution:
4. (15 points) Which option should be selected based on a present worth comparison at an interest rate of 10%? First cost, $ Annual operating & maintenance cost, $/year Salvage value, $ Life, in years Option X Option Y -230,000 -380,000 -9,000 -12,000 12,000 140,000 a. Draw the cash flow diagram for Option X. b. Calculate the present worth for Option X. c. Which option should be selected? Why?