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School

Pennsylvania State University *

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Course

351

Subject

Finance

Date

Jan 9, 2024

Type

png

Pages

1

Uploaded by ethansusen

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. (5 points) What is the percent difference in monthly payments? i. 686.25-488.43 =197.82 197.82 / 686.25 x 100 = 28.83% (5 points) Now compare the total interest payments using May 2014 vs. April 1971. i. April 1971 Total Interest Payment = $147,051 May 2014 Total Interest Payment = $75,837 . (5 points) Using an interest rate = 5%, compare the present value of $100,000 one year from now to the present value of $100,000 five years from now. i. One year from now: $100,000/1.05 = $95,238.09 Five years from now: $100,000/1.0575 = $78,352.62 Present Value: $95,238.09 - $78, 352.62 = $16,885.47
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