What equal annual payment series is required to repay the following present amounts? Working need to be done on excel file $25,000 in 6 years at 3.0% interest compounded annually. $9,500 in 7 years at 7.0% interest compounded annually. $21,500 in 5 years at 12.0% interest compounded annually. $1,000 in 15 years at 6.0% interest compounded annually.
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.
Q1: What equal annual payment series is required to repay the following present amounts?
Working need to be done on excel file
- $25,000 in 6 years at 3.0% interest compounded annually.
- $9,500 in 7 years at 7.0% interest compounded annually.
- $21,500 in 5 years at 12.0% interest compounded annually.
- $1,000 in 15 years at 6.0% interest compounded annually.
Q2: you plan to withdraw the amounts given below over the next five years from a savings account that earns 9% interest compounded annually, how much do you need to deposit now?
End of year 1 $0.00
Year 2 $24,000
Year 3 $14,000
Year 4 $26,000
Year 5 $42,000
Solve using excel file
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
