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1. Would you prefer to recieve $5,000 today or $6,000 in six years. if the current interest rate is 6% and interest is compounded and paid anually. write out formula for the present value inserting the correct numbers.

2. Would you prefer to recieved $5,000 today or $7,500 in foru years. if current interest rate is 5% and interest is compound and paid quarterly. Write out formula for the present value inserting the correct numbers.( remenber to adjust the payment periods and the interest rate to accommodate the quartely interest payments).

3. COMPUTE THE MONTHLY paymentsfor the following fixed rate loan: you ourchased a carand finnaced $16,000 AT 4% interest for 3 years with amortized (fixed) payments paid monthly. set this up int the onlie calcuato( hints you are calculating for payments . Remeber to adjust the interest amount and number of payments to reflect the monthly intrest payment.)

4. Compute the monthly payments for the following fixed rate loan: you purchase a home and financed $220,000 at 6% interest for 30 years with amortized payments paid monthly. calculate using the online calculator.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92866433

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