Question
Excel Sheet with fornulas for these questions 1. At the end of each of the next 20 years, I will receive the following amounts: Years
Excel Sheet with fornulas for these questions
1. At the end of each of the next 20 years, I will receive the following amounts:
Years | Amounts |
15 | $200 |
610 | $300 |
1120 | $400 |
Use the PV function to find the present value of these cash flows if the cost of capital is 10 percent. Hint: Begin by computing the value of receiving $400 a year for 20 years and then subtract the value of receiving $100 a year for 10 years and continue in that way.
2.You are borrowing $200,000 on a 30-year mortgage with an annual interest rate of 10 percent. Assuming end-of-month payments, determine the monthly payment, interest payment each month, and amount paid toward principal each month.
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