Problem 4.5

You are making car payments of 500 SAR per month for the next 5 years, you know that your car loan has an interest rate of 8.4%, discounted monthly, what was the initial price of the car?

Rate

Nper

FV

Payment

PV

0.084

60

0

-500

Periods = 5 years x 12 months

Problem 4.6

Suppose you have to borrow 13,000SAR at aninterest rate of 5.5%(compounded quarterly) for a period of6 years. What will be the loan amount you need to pay at the end of 6 years?

Rate

NPER

PMT

PV

FV

5.5%/4

6*4

0

13,000