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Please write the formula you use in excel and also attach the excel answers.

a) With interest rate 8%, calculate the PV of following cash flows.

Year

Payment

PV

1

1,000

 

2

1,000

 

3

1,000

 

4

1,000

 

5

1,000

 

b) You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 8 equal annual payment. Please fill up the following table.

Year

Principal
beg. year

Payment
end year

Interest

Principal

 

 

 

 

 

1

 

 

 

 

2

 

 

 

 

3

 

 

 

 

4

 

 

 

 

5

 

 

 

 

6

 

 

 

 

7

 

 

 

 

8

 

 

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9792480

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