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Please can you answer this exercise using excel functions To get started in a new telecommuting position with AB Hammond Engineers, Jane took out a
Please can you answer this exercise using excel functions
To get started in a new telecommuting position with AB Hammond Engineers, Jane took out a $1000 loan at i=10% per year for 4 years to buy home office equipment. From the lender's perspective, the investment in this young engineer is expected to produce an equivalent net cash flow of $315.47 for each of 4 years. A=$1000(A/P,10%,4)=$315.47 This represents a 10% per year rate of return on the unrecovered balance. Compute the amount of the unrecovered investment for each of the 4 years using (a) the rate of return on the unrecovered balance (the correct basis) and (b) the return on the initial $1000 investment. (c) Explain why all of the initial $1000 amount is not recovered by the final payment in part (b). To get started in a new telecommuting position with AB Hammond Engineers, Jane took out a $1000 loan at i=10% per year for 4 years to buy home office equipment. From the lender's perspective, the investment in this young engineer is expected to produce an equivalent net cash flow of $315.47 for each of 4 years. A=$1000(A/P,10%,4)=$315.47 This represents a 10% per year rate of return on the unrecovered balance. Compute the amount of the unrecovered investment for each of the 4 years using (a) the rate of return on the unrecovered balance (the correct basis) and (b) the return on the initial $1000 investment. (c) Explain why all of the initial $1000 amount is not recovered by the final payment in part (b)
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