Present Value, Note Payable Prices. Wiz Khalifa would like to invest in an $80,000 face value note payable. The note has a 12-year term and pays 10% annual interest at the end of each year. Interest is compounded annually. a. What would he pay for the note if he wanted the note to yield 10%? b. What would he pay for the note if he wanted the note to yield 12%? c. What would he pay for the note if he wanted the note to yield 20%?
Present Value, Note Payable Prices. Wiz Khalifa would like to invest in an $80,000 face value note payable. The note has a 12-year term and pays 10% annual interest at the end of each year. Interest is compounded annually. a. What would he pay for the note if he wanted the note to yield 10%? b. What would he pay for the note if he wanted the note to yield 12%? c. What would he pay for the note if he wanted the note to yield 20%?
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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how to solve this in excel? I got for
a)
$251,074.27 |
b)
$311,678.08 |
c)
$713,288.04 |
What am I doing wrong?
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