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Unformatted text preview: Interest Principle Balance 1 (2) $10,590.77 $8,342.95 $2,247,82 $95,904.51 2 (3) $10,590.77 $8,151,88 $2,438.87 $93,465.62 3 (4) $10,590.77 $7,944.58 $2,646.19 $90,819.43 4 (5) $10,590.77 $7,719.65 $2,871.12 $87,948.31 5 (6) $10,590.77 $7,475.61 $3,115.16 $84,833.15 Finance 199 Term Project Doug Metzger 6 (7) $10,590.77 $7,210.82 $3,379.95 $81,453.20 7 (8) $10,590.77 $6,923.52 $3,667.25 $77,785.95 8 (9) $10,590.77 $6,611.81 $3,978.96 $73,806.99 9 (10) $10,590.77 $6,273.59 $4,317.18 $69,489.81 The difference between these payments is $1,759.91. Using the equation for Present Value, the internal rate of return on the cost to refinance ($2,944.57) can be determined. , . ( + ) = , . $2 944 57 1 i 9 $1 759 91 Solving for i , the internal rate of return, the answer is 5.89%....
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 Fall '07
 Rushing
 Finance, Time Value Of Money, Net Present Value, Basic financial concepts, Doug Metzger, $1,847.67

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