Financial calculator COMPARISON #3 Monthly payments of $500 with an annual interest rate of 6% compounded monthly. Monthly payments of $1000 with an annual interest rate of 6% compounded monthly. Select the better option (the least amount of total interest paid) $500 $1000 Why might someone choose the other option in this case? Submit 5 $500 Present Value Payment Amount Future Value Annual Interest rate Periods (number of payments) Compounding Calculate Total Interest paid: $1000 Present Value Payment Amount Future Value Annual Interest Rate Periods (number of payments) Compounding Calculate Total Interest paid: 32,000 -$500 0 Monthly 32,000 -$1000 0 Monthly
Financial calculator COMPARISON #3 Monthly payments of $500 with an annual interest rate of 6% compounded monthly. Monthly payments of $1000 with an annual interest rate of 6% compounded monthly. Select the better option (the least amount of total interest paid) $500 $1000 Why might someone choose the other option in this case? Submit 5 $500 Present Value Payment Amount Future Value Annual Interest rate Periods (number of payments) Compounding Calculate Total Interest paid: $1000 Present Value Payment Amount Future Value Annual Interest Rate Periods (number of payments) Compounding Calculate Total Interest paid: 32,000 -$500 0 Monthly 32,000 -$1000 0 Monthly
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Can you fill in the tables and answer the questions?
I would appreciate it If you could also explain how to plug this into a financial calculator.
Here's a link to a financial calculator: http://www.fncalculator.com/financialcalculator?type=tvmCalculator
Transcribed Image Text:Financial calculator
COMPARISON #3
Monthly payments of $500 with an annual interest rate of
6% compounded monthly.
Monthly payments of $1000 with an annual interest rate
of 6% compounded monthly.
Select the better option (the least amount of total interest
paid)
$500
$1000
Why might someone choose the other option in this
case?
Submit
5
$500
Present Value
Payment Amount
Future Value
Annual Interest rate
Periods (number of
payments)
Compounding
Calculate Total Interest
paid:
$1000
Present Value
Payment Amount
Future Value
Annual Interest Rate
Periods (number of
payments)
Compounding
Calculate Total Interest
paid:
32,000
-$500
0
Monthly
32,000
-$1000
0
Monthly
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