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ALT-LOAN AMORTIZATION TABLE PV OF $1 0,04 0,05 0,06 0,08 0,10 1 0,9615 0,9524 0,9434 0,9259 0,9091 Norman borrowed $15,000 from a bank on a
| ALT-LOAN AMORTIZATION TABLE | ||||||||||||||
| PV OF $1 | 0,04 | 0,05 | 0,06 | 0,08 | 0,10 | |||||||||
| 1 | 0,9615 | 0,9524 | 0,9434 | 0,9259 | 0,9091 | |||||||||
| Norman borrowed $15,000 from a bank on a five-year installment loan, with annual payments. | 2 | 0,9246 | 0,9070 | 0,8900 | 0,8573 | 0,8264 | ||||||||
| The interest rate per year is 8.00%. | 3 | 0,8890 | 0,8638 | 0,8396 | 0,7938 | 0,7513 | ||||||||
| 4 | 0,8548 | 0,8227 | 0,7921 | 0,7350 | 0,6830 | |||||||||
| 5 | 0,8219 | 0,7835 | 0,7473 | 0,6806 | 0,6209 | |||||||||
| Tolerance = + or - .50. | ||||||||||||||
| Interest | Principal | Loan | PV OF ANNUITY OF $1 | 0,04 | 0,05 | 0,06 | 0,08 | 0,10 | ||||||
| Period | Payment | Expense | Reduction | Balance | 1 | 0,9615 | 0,9524 | 0,9434 | 0,9259 | 0,9091 | ||||
| 0 | 2 | 1,8861 | 1,8594 | 1,8334 | 1,7833 | 1,7355 | ||||||||
| 1 | 3 | 2,7751 | 2,7232 | 2,6730 | 2,5771 | 2,4869 | ||||||||
| 2 | 4 | 3,6299 | 3,5460 | 3,4651 | 3,3121 | 3,1699 | ||||||||
| 3 | 5 | 4,4518 | 4,3295 | 4,2124 | 3,9927 | 3,7908 | ||||||||
| 4 | ||||||||||||||
| 5 | ||||||||||||||
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
