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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 granted was APR compounded
monthly Use annuity formulas to answer the questions below.
a What is the present value of the remaining payments, using the APR given above as a discount rate?
b Your 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 EAR Use that return to
determine the present value of your future payments on the loan described above.
c Which 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.
solve this for me with
complete explaintion and tell me how should I make an
spreadsheet in excel because I should give it to my professor
as a spreadsheet excel not Ai
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