Fin/419 Text Problems

Running head: INDIVIDUAL TEXT PROBLEMS WEEK 3 soulfulness Text Problems Week 3 University of Phoenix unmarried Text Problems Week 3 P4-23 A. pursuance Rate 11% Number of Periods 30 Annuity allowance 20,000 (20,000/.11)X(1-1/(1+.11)^30)=173,875.85 B. 173,875.85X(1+.09)^20=31,024.82 C. high compounding worry rates entrust show more(prenominal) money, meaning less would be needed straightaway to pull the same output tomorrow. P4-32 End of year reckon PV operator @8% PV 1 $ 5,000 0.9259 4629.63 2 4,000 0.8573 3429.36 3 6,000 0.7938 4762.99 4 10,000 0.7350 7350.30 5 3,0000.6806 2041.75 Total Present Value = $22,214.03 B. If earning rate goes up wherefore the number calculated in Part A will go down because the raise in inte rest makes the innovate value of the amount go down. P4-46 A. PMT= 15,000/(1-1.14/0.14) PMT = $15,000 ÷ 2.321632 PMT = $6,460.97 B. End of give graduation exercise of Payment End of grade course of instruction Payment Year Principal Interest Principal Principal 1 $ 6,460.97 $15,000.00 $2,100.00 $4,360.97 $10,639.

03 2 6,460.97 10,639.03 1,489.46 4,971.51 5,667.52 3 6,460.97 5,667.52 793.45! 5,667.52 0.00 C. It declines through the passage of time because throughout yearly end-of-year payments the important balance of the loan is declining. This causes less interest to be accumulated on the balance in each year. P4-48 A. Payment would be = Amount / PV factor of Ordinary Annuity at 1% and 24 Periods)  Monthly Payment = 4000/21.24339 = $188.29 B. PV= -4000 Rate= 0.75% N= 24...If you demand to get a full essay, order it on our website: OrderEssay.net

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