Interest and Financial

Since it is important to not round until the final step of the calculations, the spreadsheet applet above and its built-in formulas will be very helpful answering the questions below. The terms of the loan stipulate that Pennypacker will pay an annual interest rate of 3.432%, compounded quarterly, for a term of 13 years. money? From the perspective of Varnsen S&L, the Future Value of the loan will be A (round to the nearest cent). (b) From the list below, identify the formula used by the spreadsheet to compute the answer to part (a). A. F=(nr)P((1+nr)nt1) B. F=P(1+rt) C. F=Peri D. rB=(1+nr)n1 E. F=P(1+nr)nt F. None of these r=m=P=n=t= ordinary annuity, with a goal of reaching the future value found in part (a). number of period (i.e., total number of payments) in B12. The payment will display in B13. Varnsen Savings and Loan will require a quarterly payment of $ (round to the nearest cent) in their loan repayment contract with Pennypacker. (e) From the list below, identify the formula used by the spreadsheet to compute the answer to part (d). A. F=P(1+rt) B. F=Pert C. F=(n7)P((1+n)nt1) D. F=P(1+nr)nt E. rE=(1+nr)n1 n=t=F=r= Determine all of the following information about Pennypacker's loan. For each step, use the value of the payment rounded to the nearest cent. Total value of the mine (amount of original loan) is $ Pennypacker's quarterly amortization payments will each be $ The total number of amortization payments over the 13 year term will be The total amount that Pennypacker will pay back to Varnsen Savings and Loan over the full 13 years will be : The total amount of interest that Pennypacker will pay over the term of the loan will be : RemainingBalance=P(nr1(1+nr)nt)=P(40.004321(1+40.03432)44) Thus, the balance remaining on the loan after 9 years will be $ (to the nearest cent). Now, recall that the original value of the mine (the original amount of the loan) was : Thus, after 9 years, Pennypacker's equity in the mine is : (to the nearest cent). In other words, Pennypacker's equity in the silver mine is % (round percent to 3 decimal places) after 9 years