Payment amounts at the end of each of the next five years are $10,450, $8,500, $9,675, $12,500, and $11,635. Discount rate is 10.875%. We need to determine the cost in today's dollars of the equipment Saul purchased today.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Payment amounts at the end of each of the next five years are $10,450, $8,500, $9,675, $12,500, and $11,635.
Discount rate is 10.875%.
We need to determine the cost in today's dollars of the equipment Saul purchased today.
I really need the formulas on how you got to the answers =PV(D17,D13,-D15) I got the first on I do not understand the rest for the Present value and how the answer comes up with $38, 652.76 I have different ways and still do not understand.
Step by step
Solved in 3 steps with 2 images
