Answered step by step
Verified Expert Solution
Question
1 Approved Answer
for help this is the question 1 2 earnis sya compound quarterly your STO then it from 0 to 9 will store a value in
for help
this is the question
1 2 earnis sya compound quarterly your STO then it from 0 to 9 will store a value in that spot goal is to have $50,000 at the end of 5 0 RCL then the # will recall the years, how much would you have to stored number deposit at the end of each month to achieve this? BANI Description Helpful hints Example Total number of payments or 60 N compounds in the year (if no payments) N = # of years. P/Y (5 yrs 12) I/Y Nominal interest rate per year Look for the # before the % 5 ** Do not divide by m Payments per year P/Y (if no payments, P/Y = C/Y) Annually = 1 P/Y = 12 Semi-annually = 2 Compounds per year Quarterly = 4 CHY Look for the word "compounded" Monthly = 12 C/Y = 4 Daily = 365 Present Value Refers to a one-time payment PV Earliest point in time before FV Keywords: lumpsum one-time, today - 20,000 Payment with regular intervals If outflow of cash (paid) enter as (-) PMT Total # PMTS per year = P/Y If inflow of cash (received) enter as (+) CPT PMT =-358.38 Keywords: each, every, at the end of If unsure, plot amounts on a timeline to FV Future Value determine if PV or FV 50.000 Latest point in time, after PV Keywords: maturity value," "today" payments were in the past For calculations with payments at the Examples: Leases, rent payments BGN beginning of a period (Annuities Due) Keywords: Beginning, at the start N/A To set: 2BGN->2 SET->QUIT CPT To compute your unknown value Press CPT and then unknown variable CPT PMT Converting interest from Nominal (NOM) Remember to press "Enter" to set the Access by pressing 2nd and "2" NOM = 5 ICONV to/from Effective (EFF) rate for a given compounding frequency (C/Y) Input and "CPT" for your answer. C/Y - 4 EFF = 5.09 Use arrows to scroll Neville is repaying a loan by making payments of $500 per month for the next 2 years. The interest on the loan is 7.5% compounded monthly. How much is the loan? Round to two places after the decimal. Enter negative sign" -"in boxes as required. 1/Y P/Y cly N PV PMT FV The amount of Neville's loan is $ Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started