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Ex. 2 You take out a $800,000 loan @ 7%. To be repaid in 30 years (monthly installments). Let m = 12 (# of
Ex. 2 You take out a $800,000 loan @ 7%. To be repaid in 30 years (monthly installments). Let m = 12 (# of compounding periods in a year). = PVA $800,000 = Inst. 1 Inst. 1 () (1 + r/m)mt .07 (1+.07/12)12x30 12 = Inst. Monthly Installment = $80,000 x (.07/12) = $80,000 x 0.0058 1 1 = 464.0000 = $5,322.21 (1+.07/12)360 ] [ 1 +0.0058360 ] [- ' 1
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Venture capital and the finance of innovation
Authors: Andrew Metrick
2nd Edition
9781118137888, 470454709, 1118137884, 978-0470454701
