FIN 419 Week 3 Problems Essays - Mathematical Finance, Loans

Balance 419 Week 3 Problems Essays - Mathematical Finance, Loans Issue 1-A $85,000.00 Future Value: $873,260.59 9%FV 30$873,260.59 PV(D2,D3,D1) Interest:9% Answer Years:35Future Value:$42,777.60 PV(B4,B6,0,B2,0) Issue 1-B Present Value$85,000.00 Interest:11% Answer Years:30Future Value:$738,972.37 PV(B10,B12,B8) Issue 1-C If rates somehow happened to raise the sums required for the multi year time frame preceding resigning would lower. Expanding the loan fee builds the future estimation of the venture making a lesser sum be required. Issue 2-A YearAmountPresnt Value FactorPresent Value 1 $7,000.00 0.9345794391/(1+A19)^B24 $6,542.06 B19*D19 2 $4,000.00 0.9259797991/(1+A20)^B24 $3,703.92 B20*D20 3 $8,000.00 0.9075191551/(1+A21)^B24 $7,260.15 B21*D21 4 $10,000.00 0.8934537991/(1+A22)^B24 $8,934.54 B22*D22 5 $13,000.00 0.8821235421/(1+A23)^B24 $11,467.61 B23*D23 Rate7%Total (Answer) $37,908.27 Issue 2-B At the point when the procuring rate expands the aggregate sum diminishes. As the rate increments so does the premium earned toward the venture. The bigger your rate is the lower your current worth should be to cover your future worth deficit Issue 3-A Sum: $(25,000.00)$10,768.29 PMT(B31,B32,B30)End of Year Loan Payment Yearly Interest:14%Answer Years:3 Payments:3 Issue 3-B If it's not too much trouble see appended exceed expectations spreadsheet for Loan Amortization Schedule Issue 3-C As the chief sum is paid onto an advance the intrigue sum diminishes. This is on the grounds that intrigue is resolved dependent on present parity. Issue 4-A To begin we are putting $500 down on a $6,500 advance, which leaves $6,000 Credit: $(6,000.00) Yearly Rate:14% Years:2Answer Payments:24Monthly Payment:$288.08 PMT(B43/12,B45,B42) Total:$6,913.86 E45*B45 Issue 4-B Once more, to begin we are putting $500 down on a $6,500 advance, which leaves $6,000 Credit: $(6,000.00) Yearly Rate:9% Years:2Answer Payments:24Monthly Payment:$274.11 PMT(B49/12,B45,B48) Total$6,578.60 E52*B52