Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year)...
Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years. · Investor #2 offers you the $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year.
how is this inputted in excel formula?
Homework Answers
For Investor 1, function FV can be used. The screenshot of Excel is provided below.
Amount at the end of 5 years to paid = $440,798.2.
For Investor 2
Interest Paid for the first 4 years = 24000
Amount paid in the last year =Interest in the last year + Outstanding Principal
= 300000 + 24000 =324000
Add Answer to:
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