CFIN (with MindTap Finance, 1 term (6 months) Printed Access Card) (MindTap Course List)
CFIN (with MindTap Finance, 1 term (6 months) Printed Access Card) (MindTap Course List)
6th Edition
ISBN: 9781337407342
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Chapter 4, Problem 25PROB
Summary Introduction

N has taken 5-year loan of $32,000 at 3% interest compounded monthly.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[11(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

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