a contract requires lease payments of $700 at the beginning of every month for 5 years. a. What is the present value of the contract if the lease rate is 4.77% compounded annually? b. What is the present value of the contract if the lease rate is 4.77% compounded daily? Andrew paid off his student loan in 4 years by making payments of $550 at the beginning of every month. The interest rate on his loan was 6.20% compounded monthly. a. Calculate the size of the original loan. b. Calculate the amount of interest paid on the loan.
a contract requires lease payments of $700 at the beginning of every month for 5 years. a. What is the present value of the contract if the lease rate is 4.77% compounded annually? b. What is the present value of the contract if the lease rate is 4.77% compounded daily? Andrew paid off his student loan in 4 years by making payments of $550 at the beginning of every month. The interest rate on his loan was 6.20% compounded monthly. a. Calculate the size of the original loan. b. Calculate the amount of interest paid on the loan.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 5E
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a contract requires lease payments of $700 at the beginning of every month for 5 years.
a. What is the present value of the contract if the lease rate is 4.77% compounded annually?
b. What is the present value of the contract if the lease rate is 4.77% compounded daily?
Andrew paid off his student loan in 4 years by making payments of $550 at the beginning of every month. The interest rate on his loan was 6.20% compounded monthly.
a. Calculate the size of the original loan.
b. Calculate the amount of interest paid on the loan.
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