Ex8

109 If you borrow $800000 to purchase a home, what do you expect your monthly payment will be? Assume a 30 year mortgage and a fixed 7% interest rate. Exercise 8 110 7.00 The amount of the payment is the same every period (annuity). The amount you're borrowing is in today's dollars, so you'll use the PV of an annuity table. Divide the factor by amount borrowed for the annual PMT. 113 114 115 116 Divide by 12 for the monthly PMT. 117 118 Present Value of an Ordinary Annuity of $1 1 16% 20% 15% 0.301 0.093 0.885 0 877 0870 0.862 0.855 0847 0.840 0833 1605 17% 18% 13% 1 0.917 0.909 12% 13% 5% 0.952 1859 14% 6% 8% 0.926 9% 3% 0.971 4% 0935 1808 0.362 0.943 3 1547 1528 2.140 2.106 1690 2.402 3.102 3.037 2974 1585 1566 1713 2444 1647 1626 1668 1833 1783 1.759 1736 1913 1886 2.775 4 2.210 2.174 2914 2855 2.798 2743 2690 2639 2.589 2 361 2.322 2.283 2.246 2577 3312 3.993 4.623 5.206 5.747 2.531 2487 2.829 2 723 2673 3.465 4.212 2.624 5 3.387 3.170 3.890 3791 3.696 3.605 3546 3.240 6 3.717 3.630 3.433 3352 3.274 4.111 3.998 3889 3.784 3685 3589 3.498 4.160 4.039 3922 3.199 3.127 3.058 2.991 3.517 4.580 5.417 6.230 4.100 4.452 5.242 4.329 7 3410 3326 3.812 3706 3.605 3837 4031 4.231 4.712 4.564 4,423 4.280 5.076 4.767 4.486 4.355 4.917 8 5.582 5.033 4.868 6.002 5.786 5 389 5.535 5.335 5.146 4.968 4799 5.995 5 759 5.537 5.328 5 132 4946 4772 4.607 6418 6 145 5,889 5.650 5.426 5215 5019 4.833 4659 4494 6.805 6.495 6207 5.938 5687 5.453 5234 5.029 4.836 4487 4.344 4.207 4.078 3954 4.451 4.303 4.639 6.733 7.435 5971 6.515 7.024 7.499 6.463 6.210 10 7.020 4.163 4.339 4.656 4486 4.327 4.611 4433 4 715 4533 6 802 7.360 7.887 6.247 7.706 8530 9 253 7.108 11 4.192 6710 7.139 7.536 7.504 8244 6559 8851 9 122 3372 3.604 7.722 8 306 8863 8.111 12 8760 9 365 13 5.421 5.197 4300 4793 5 110 684 6.492 6.134 5918 5.660 7.943 7.161 8.304 14 9.954 4.910 7.103 6750 6.424 6.122 5042 5583 5.342 8.356 10.635 11 296 11930 8.053 9.295 7 487 9986 3.394 15 4.611 7.706 7.367 6.902 6.628 6302 6.002 5724 5.468 5 229 5.008 4802 3.893 10 300 10 838 8745 16 10.563 6 142 5647 5575 5324 5092 4.876 4675 4730 7.191 6811 6462 3108 8.061 7606 8 313 7824 7.379 6.974 6604 6.265 5954 5 668 5 405 5162 4936 8544 8022 7.549 8.756 8201 7,702 7.250 6840 6.467 8.950 8365 7.839 7.366 6938 6.550 9.129 9.823 9077 8 422 7.843 7.330 6873 6 464 6.097 5.766 5467 10274 9427 8694 8.055 7.496 7.003 6566 10.567 9.644 8 855 8.176 7.586 7.070 6.617 6.215 5.058 5.533 5.251 4.332 9712 10 106 10 477 10.828 11 158 11.110 11652 17 18 9.447 12.561 7.120 6729 6373 6047 5.749 5475 5.222 4.990 4 775 4,812 4.843 9763 10 059 11274 11690 12.065 12 462 12 166 19 13 156 13.754 14.324 5.818 5534 5273 5 033 6.198 5877 5.584 5.316 5.070 6.128 12 659 20 10.336 10.594 11654 13.134 21 5.101 4870 8.54 7.963 7469 7025 6.623 6259 5.929 5620 5353 11470 12.783 9818 10.675 4.677 13.590 22 5. 195 4.948 S.S17 5.235 4979 15 622 17.292 18.665 14.094 23 17.413 6 177 5829 11.258 11.655 BYN 15.372 15.374 14 498 12 409 13.765 19.600 24 12.948 25 21.487 EV Table PVA Table PV Table FVA Table in-class PR 1-12 DQ as EX Ready Page: 1 of 1