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5. Excel. The company you work for borrows $24 million for five years. The loan will be paid back in equal quarterly payments. For tax
5. Excel. The company you work for borrows $24 million for five years.
The loan will be
paid back in equal quarterly payments.
For tax purposes your manger asks you to prepare the
five years annual interest charges on that loan. Assume annual interest rate of 16%.
6. An investor saves for retirement $400 per month in next 40 years.
The money is invested in
a stock/ bond portfolio and is expected to earn an average 8% per year.
When he retires, he
believes he will live 30 years and he will invest his retirement fund in a conservative bond fund
that will earn 3% per year.
a. Calculate the investor's planned equal monthly withdrawals in his retirement years.
7
Evaluate the monthly payment on a 15-year mortgage of $600,000 and 5.2% annual rate.
How much does the borrower owe after eight years? Try without Excel!
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