You win the lottery! Do you wish to receive $2,000,000 in one payment now, or $167,000 per year for 30 years? To help you in your decision, estimate the present value of the second option assuming constant annual interest rates of 6%, 8%, and 10%. Expound on your decision within a text box. (You may use the built-in PV function within Excel)
You win the lottery! Do you wish to receive $2,000,000 in one payment now, or $167,000...
You wish to buy a car for $12,000 at a 5% annual interest rate, compounded monthly. The loan will be repaid in 5 years with monthly payments. What is your monthly payment (calculated with the equations on the next page)? Compare your answer to that obtained with the built in function, PMT. Be sure to label all cells appropriately. (There is no need to create a monthly payment table, simply use the equations on the next page.) Loans: where: and,...
1) You wish to borrow $150,000 from a lending institution for the purchase of a house. The bank will lend this amount at an Annual Percentage Rate of 4.5% to be paid-off with equal monthly mortgage payments over a 30-year period. This is a 4.5% APR, 30-year fixed-rate mortgage loan. You wish to know how this loan will affect your federal income tax burden, as only the interest paid on a home mortgage, not the principal, is tax deductible. Construct...
An investment adviser has promised to double your money. If the interest rate is 7% a year, how many years will she take to do so? We have entered the data vou need in cells H9 to HI1: Present value (PV) Future value (FV) Interest rate (r) 1 2 0,06 You can use the present value formula to value an annuity You can either find the answer by taking logs of the present value formula or you can use Excel's...
Which Excel function is used to calculate the amount of each annuity payment? FV NPV PMT PV Which fields are required to calculate the rate of return (RATE) for a present value calculation in Excel? Nper, PMT, and NPV Nper, PMT, and PV Type, PMT, and FV PMT, Type, and NPV
What is the present value of $929 to be received in 13.5 years from today if our discount rate is 3.5 percent? PLEASE SHOW ME EXACTLY HOW TO DO THE PROBLEM!!!! I INSERTED A PICTURE FOR AN EXAMPLE! Future Value after 9 years is calculated using EXCEL FUNCTION FV(rate, nper,pmt, pv,type) where rate-1.5%; nper-9; pmt-o; pe-3520000; type=0; Here, value for pv is negative as it denotes cash inflows; type as interest is compounded at the end of each period only....
Use the PMT function in Excel to compute the monthly payment on a $328000 business loan at an annual interest rate of 7.15% over 20 years, where the interest is compounded monthly. Hint: The PMT (Payment) function is entered in Excel as =PMT(Rate, Nper, Pv, Fv, Type) Fv and Type are not necessary. Ignore them. Enter the amount of your monthly payment below. Do not include the dollar sign ($)
If you bought a stock for $53 dollars and could sell it 16 years later for three times what you originally paid. What was your return on owning this stock? PLEASE SHOW ME EXACTLY HOW TO DO THE PROBLEM!!!! I INSERTED A PICTURE FOR AN EXAMPLE! Future Value after 9 years is calculated using EXCEL FUNCTION FV(rate, nper,pmt, pv,type) where rate-1.5%; nper-9; pmt-o; pe-3520000; type=0; Here, value for pv is negative as it denotes cash inflows; type as interest is...
1. If we place $7,654 in a savings account paying 7.5 percent interest compounded annually, how much will our account accrue to in 8.5 years? PLEASE SHOW ME EXACTLY HOW TO DO THE PROBLEM!!!! I INSERTED A PICTURE FOR AN EXAMPLE! Future Value after 9 years is calculated using EXCEL FUNCTION FV(rate, nper,pmt, pv,type) where rate-1.5%; nper-9; pmt-o; pe-3520000; type=0; Here, value for pv is negative as it denotes cash inflows; type as interest is compounded at the end of...
12-3. Assume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales-commission selling price for the property is $470,000. You are willing to finance this transaction over a 16-year period and have told the buyer that you expect a 15% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. Required: 1. What will be your periodic cash receipt, to...
I need help on question 2. MODULE IV: TIME VALUE OF MONEY INTRODUCTION The time value of money analysis has many a lysis has many applications, ranging from setting hedules for paying off loans to decisions about whether to invest in a partie financial instrument. First, let's define the following notations: I = the interest rate per period Na the total number of payment periods in an annuity PMT = the annuity payment made each period PV = present value...