This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: year for 20 years, discounted at 12%? What will your value at retirement be if you deposit $100 each month for the next 12 years? Your annual discount rate is 8%. Solving for Payment n 15 monthly 180 i 4.50% monthly 0.375% PV $(250,000) FV $ Use PMT =(.375,180,250000,0) $1,912.48 monthly payment Solving for rate n 5 PV $1,000 FV $2,500 Use RATERATE(nper, pmt, pv, fv, 0, guess) 20% =RATE(5,0, 2500,1000,0,.05) Over the next 15 years you want to pay off the balance on your home mortgage. If your mortgage value is 250,000 today, what will your payment be if your interest rate is 4.5%? Assume monthly compounding. You are offered $2,500 5 years from now in exchange for $1,000 today. What annual rate of return would you earn if you take this offer? Assume annual compounding....
View
Full
Document
This note was uploaded on 12/29/2011 for the course FINANCE 35 taught by Professor Xdfg during the Spring '11 term at Abraham Baldwin Agricultural College.
 Spring '11
 xdfg
 Future Value

Click to edit the document details