Must be solved using the PV and FV functions in Excel. 2) You obtain an installment...
Must be solved using the PV and FV functions in Excel.
2) You obtain an installment loan to pay for graduate school in the amount of $30,000. If the lender charges you 7% interest and you are required to pay the loan off in equal annual installments over a period of 8 years, what is the amount of each installment?
Homework Answers
Annual Instalment = Loan Amount / PVAF(r%, n)
= $ 30000 / PVAF(7%, 8)
= $ 30000 / 5.9713
= $ 5024.03
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Must be solved using the PV and FV functions in
Excel.
2) You obtain an installment...
Use Excel (PV, FV, or PMT) Let's say you are planning to purchase a house as...
Use Excel (PV, FV, or PMT)
Let's say you are planning to purchase a house as soon as your student loans are paid off in 8 years. After graduation, you plan to live in an apartment for $820 a month and your dream is to buy a home worth $240,000 in 8 years. Once your debt is paid off, you will combine your apartment payment with your former debt payment to pay for the mortgage. That does not mean it...
FV/PV Annuity Problems Problem H-4 HB 302 FV/PV Annuity Problems 1. Carly is saving to open...
FV/PV Annuity Problems
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Installment Loan Schedule Assume you are to borrow money, the loan amount, at an annual interest...
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aSuppose you bought a house and took out a mortgage for $100,000. The interest rate is...
aSuppose you bought a house and took out a mortgage for $100,000. The interest rate is 3%, and you must amortize the loan over 10 years with equal end-of-year payments. A. Calculate the mortgage payment using the Excel function Rate Nper PV FV Payment B. Set up an amortization schedule that shows the annual payments and the amount of each payment that repays the principal and the amount that constitutes interest expense to the borrower and interest income to the...
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The following situations should be considered independently. (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.) 1. John Jamison wants to accumulate $77,709 for a down payment on a small business. He will invest $39,000 today in a bank account paying 9% interest compounded annually. Approximately how long will it take John to reach his goal? 2. The Jasmine Tea Company purchased merchandise...
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Q1 - Describe N,I/Y,PV,PMT, and FV. Q2 – Why is there one negative sign among the last three listed in Q1? Q3 – What is the difference between compounding and discounting? Q4 – What is an annuity? What are the different types of annuities? When are payments made? Q5 – What is a perpetuity? What is the relationship between PV and Interest? Q6 – Does FV get larger or smaller based off monthly compounding compared to quarterly compounding? Q7 –...
I need this solved step by step and by hand. Please no Excel. Thank You! 1...
I
need this solved step by step and by hand. Please no Excel. Thank
You!
1 7) (35 points) EmKay, Inc. is considering the purchase of new automated equipment to increase its production capacity. For this purchase, the following data apply: Purchase price = $450,000 (S250,000 from own funds (equity) and $200,000 from a loan) Equipment Life: 4 years Depreciation: MACRS-GDS 3-year property Estimated salvage: $90,000 Effective tax rate: 35% EOY Expected O&M Costs Estimated revenue $30,000 $180,000 2 $40,000...
The following situations should be considered independently. (FV of $1. PV of $1. FVA of $1....
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The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and...
The following situations should be considered independently. (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.)
1. John Jamison wants to accumulate $79,881 for a
down payment on a small business. He will invest $37,000 today in a
bank account paying 8% interest compounded annually. Approximately
how long will it take John to reach his goal?
2. The Jasmine Tea Company purchased merchandise...
Use Excel (PV, FV, or PMT)
Let's say you are planning to purchase a house as soon as your student loans are paid off in 8 years. After graduation, you plan to live in an apartment for $820 a month and your dream is to buy a home worth $240,000 in 8 years. Once your debt is paid off, you will combine your apartment payment with your former debt payment to pay for the mortgage. That does not mean it...
FV/PV Annuity Problems
Problem H-4 HB 302 FV/PV Annuity Problems 1. Carly is saving to open her own business in ten vears. She currently has $10,000 and she plans to save $2,000 per year for the next five vears and $3.000 each year for the following five years. How much will she have in 10 years if she earns a 10% return on her savings? 2. What is the rate of interest on a $10,000 loan that is to be...
Installment Loan Schedule Assume you are to borrow money, the loan amount, at an annual interest rate to be paid in equal installments each period Loan Amount $ 25,000 9.90% Annual Interest Rate Periods per year 12 Years to payback See Table B.3 in book. 47.17454194 FACTOR = [1 -(1 / ((1R)An)]/ R Factor $ Equal Payments 529.95 let R = period interest rate number of periods to payback loan let n Number of periods: 60 Reduction in Principal Interest...
The following situations should be considered independently. (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.) 1. John Jamison wants to accumulate $77,709 for a down payment on a small business. He will invest $39,000 today in a bank account paying 9% interest compounded annually. Approximately how long will it take John to reach his goal? 2. The Jasmine Tea Company purchased merchandise...
I
need this solved step by step and by hand. Please no Excel. Thank
You!
1 7) (35 points) EmKay, Inc. is considering the purchase of new automated equipment to increase its production capacity. For this purchase, the following data apply: Purchase price = $450,000 (S250,000 from own funds (equity) and $200,000 from a loan) Equipment Life: 4 years Depreciation: MACRS-GDS 3-year property Estimated salvage: $90,000 Effective tax rate: 35% EOY Expected O&M Costs Estimated revenue $30,000 $180,000 2 $40,000...
The following situations should be considered independently. (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.) 1. John Jamison wants to accumulate $60,000 for a down payment on a small business. He will invest $30,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal? 2. The Jasmine Tea Company purchased merchandise...
The following situations should be considered independently. (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.)
1. John Jamison wants to accumulate $79,881 for a
down payment on a small business. He will invest $37,000 today in a
bank account paying 8% interest compounded annually. Approximately
how long will it take John to reach his goal?
2. The Jasmine Tea Company purchased merchandise...
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