This preview shows page 1. Sign up to view the full content.
Unformatted text preview: R: interest rate (see example 3) o Annuity Formula (see Chpt 6, #4) Finding the Number of payments of an Annuity PV=C((1(1/((1+r)^t)))/r) Finding the rate o Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $207.58 per month for 60 months. What is the monthly interest rate? Sign Convention Matters N = 60 months PV = 10,000 PMT = 207.58 o (See Chpt 6,#5)...
View
Full
Document
This note was uploaded on 04/07/2008 for the course BA 3341 taught by Professor Polkovnichenko during the Spring '08 term at University of Texas at Dallas, Richardson.
 Spring '08
 Polkovnichenko
 Annuity, Valuation

Click to edit the document details