Calculate for the cells highlighted in yellow Time Value of Money problems For these problems where interest rate is needed use: 7% Annual investment 2,500 Life of investment (years) 10 #7 Future value Price of car 2$ 12,000 Down payment 20% Life of loan (years) 3 # 8 Monthly payment Amount to be received at maturity $ 25,000 Number of years Amount of annual payment 10 #9 Year: 1 Cash flows 4. (10,000) 2500 2500 2500 2500 2500 #10 Net present value:
Calculate for the cells highlighted in yellow Time Value of Money problems For these problems where interest rate is needed use: 7% Annual investment 2,500 Life of investment (years) 10 #7 Future value Price of car 2$ 12,000 Down payment 20% Life of loan (years) 3 # 8 Monthly payment Amount to be received at maturity $ 25,000 Number of years Amount of annual payment 10 #9 Year: 1 Cash flows 4. (10,000) 2500 2500 2500 2500 2500 #10 Net present value:
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Step 1
7.
annual investment = 2500
life of investment = 10
future value =34,541.12
formula =FV(7%,10,-2500)
Step 2
8.
price of car =12000
down payment =20%
life of loan = 3
monthly payment= 3658.1
formula =PMT(7%,3,(12000*(1-20%)))
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