MyFinanceLab Ch. 6

# MyFinanceLab Ch 6 - out of the NPV equation • “Three investment alternatives each w deposits at different missing years” o Set up as uneven

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MyFinanceLab Ch. 6: What is the balance on your current loan if you just made the 60 th payment? o Find PV of remaining 240 payments o =PV (.07/ 12, 240, payments of 2120.34) The long retirement problem: o Initial sum: NPV (rate, inputs) APR = nominal rate = yearly “false” rate o Not the EAR When setting up cash flows, make sure you make the initial deposit year 0, and leave it
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Unformatted text preview: out of the NPV equation • “Three investment alternatives, each w/ deposits at different/ missing years”: o Set up as uneven cash flow problems in Excel o Find NPVs o Include all years and 0’s in range • Continuous compounding: o FV = PV x e^(rate x time) o PV = cash flow/ e^(rate x time)...
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## This note was uploaded on 06/11/2011 for the course BUSI 408 taught by Professor Croce during the Spring '08 term at UNC.

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