Question
1.Solve the following financial problems using the time value of money functions in Excel (PV, FV, PMT, NPER, RATE, EFFECT) OR using your financial calculator.
1.Solve the following financial problems using the time value of money functions in Excel (PV, FV, PMT, NPER, RATE, EFFECT) OR using your financial calculator.
oWhat is the present value of an annuity due that promises $20,000 per year for 20 years if the appropriate discount rate is 5%?
oWhat is the future value of an ordinary annuity that promises $60,000 per year for 10 years if the appropriate interest rate is 4%?
oWhat is the future value of an annuity due that promises $60,000 per year for 10 years if the appropriate interest rate is 4%?
oYou recently received a credit card that quotes an annual percentage rate (APR) of 24%. The card requires monthly payments. What is the effective annual rate (EAR)?
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
