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A consumer loan you took out several years ago requires fixed monthly payments of $ 7 0 0 . 0 0 . You just made
A consumer loan you took out several years ago requires fixed monthly payments of $You just made a payment, and payments remain to be made; the next payment is due in one month. The rate of return used to compute these payments when the loan was grantedwas APRcompounded monthlyUse annuity formulas to answer the questions below.
aWhat is the present value of the remaining payments, using the APR given above as a discount rate? please calculate the final answer because my problem is with the final amount
bYour friend, a bank loan officer, looked at your risk profile. She says that her bank would offer you a loan on similar terms but at a lower return: an annual return of EARUse that return to determine the present value of your future payments on the loan described above. please calculate the final answer because my problem is with the final amount
cWhich of these two present values is the more accurate measure of the current value of those future payments? Explain your answer! Hint: this requires no calculations, just common sense.
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