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**Unformatted text preview: **ermine FV for each of the following compounding periods by changing
only the following:
a. np to 2, and ir to 8/2
b. np to 12, and ir to 8/12
c. np to 52, and ir to 8/52
3. To determine the PV of a fixed amount, enter the following:
Into FV, 1080; into np, 1; into pmt, 0; and, into ir, 8. Now click on
Calculate PV. What is the PV?
4. To determine the FV of an annuity, enter the following:
Into PV, 0; into FV, 0; into np, 12; into pmt, 1000; and, into ir, 8. Now
click on Calculate FV. What is the FV?
5. To determine the PV of an annuity, change only the FV setting to 0; keep
the other entries the same as in question 4. Click on Calculate PV. What is
the PV?
6. Check your answers for questions 4 and 5 by using the techniques discussed
in this chapter.
Go to Web site www.homeowners.com/. Click on Calculators in the left column.
Click on Mortgage Calculator.
7. Enter the following into the mortgage calculator: Loan amount, 100000;
duration in years, 30; and interest rate, 10. Click on compute payment.
What is the monthly payment?
8. Calculate the monthly payment for $100,000 loans for 30 years at 8%, 6%,
4%, and 2%.
9. Calculate the monthly payment for $100,000 loans at 8% for 30 years,
20 years, 10 years, and 5 years. Remember to check the book’s Web site at
www.aw.com/gitman
for additional resources, including additional Web exercises....

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