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1. 2. The answers for 1,2 are correct but I want to know how to get those answers. Thank You! Your company borrows $20,000 for

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The answers for 1,2 are correct but I want to know how to get those answers.

Thank You!

Your company borrows $20,000 for 5 years at simple interest rate of 8%. It is set to return $2,000, $4,000 and $6,000 at the end of years 2, 3 and 4. Generate the cash flow table and type in the "Interest paid" and "Final cash flow". Note 1: The two columns of the table from left to right represent the "Interest paid" and "Final cash flow" 0 20000 1600 -1600 1600 -3600 answer ? 100% 1440 -5440 1120 -7120 640 -8640 12,000 i = 5% 8,000 1 2 3 4 5 P=? Calculate the value for P using compound interest calculations and the cash flow diagram above. The interest rate is annual and each time unit is one year. Assume the entire principal is paid off after year 5. Hint: Break down this cash flow into two single payments. 5% 5% Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.050 .9524 1.102 .9070 1.158 .8638 1.216 .8227 1.276 .7835 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P F/A 1.0500 1.000 .5378 2.050 .3672 3.152 .2820 4.310 .2310 5.526 Sinking Fund Factor Find A Given F A/F 1.0000 .4878 .3172 .2320 .1810 n Present Worth Factor Find P Given A P/A 0.952 1.859 2.723 3.546 4.329 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/G 0 0 0.488 0.907 0.967 2.635 1.439 5.103 1.902 8.237 n 1 2 3 4 5 1 2 3 4 5 Round your FINAL answer to the nearest integer (Do not round at intermediate steps!) 16313 100%

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