Finance Chapter_2_answer' - End Balance 17,447.13 9,138.97...

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Page Part To find Formula Excel's Result Note 56 1a. FV \$530.00 \$530.00 1b. FV \$627.20 \$627.20 1c. PV \$471.70 \$471.70 1d. PV \$445.00 \$445.00 57 Contract 1 PV \$9,509,596.34 \$9,509,596.34 Contract 2 PV \$10,717,847.14 \$10,717,847.14 Choose this Contract 3 PV \$8,624,410.90 \$8,624,410.90 59 a. End of year Starting Balance Payment Interest paid Principal paid 1 25,000.00 10,052.87 2,500.00 7,552.87 2 17,447.13 10,052.87 1,744.71 8,308.16 3 9,138.97 10,052.87 913.90 9,138.97 b. Payment Interest paid Interest % Principal paid Principle % 10,052.87 2,500.00 24.87 7,552.87 75.13 10,052.87 1,744.71 17.36 8,308.16 82.64 10,052.87 913.90 9.09 9,138.97 90.91 The interest% is fixed at 10% of the starting balance and is higher than that of the princi When the loan is gradually amortized, the interest reduces, but the same amount is still leading to the principle % increases, i.e. the principle is paid off.

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Unformatted text preview: End Balance 17,447.13 9,138.97 0.00 iple %. l being paid Question Part To find Formula Excel's Result Note ST-2 a. FV 1259.71200000000 \$1,259.71 annual compound b. EFF 0.08243216000 0.0824 FV 1268.24179456255 \$1,268.24 quarterly compound c. FV 1082.13225120000 \$1,082.13 annual compound, ordinary annui d. FV 1168.70283129600 \$1,168.70 annual compound, annuity due e. PMT 359.29029078364 \$359.29 ST-3 a. PV 735.02985279645 \$735.03 b. PMT 221.92080445404 \$221.92 ordinary annuity c. FV 1020.36672000000 \$1,020.37 Father's give, choose this d. PV 694.44444444445 \$694.44 FV 1000.20042670838 \$1,000.38 Thus IRR ~ 9.95% e. FV \$1,000.13 Thus IRR ~ 15.1% ity...
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This note was uploaded on 04/29/2008 for the course MT 217-02 taught by Professor Petervanhengel during the Summer '07 term at Kaplan University.

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Finance Chapter_2_answer' - End Balance 17,447.13 9,138.97...

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