Question
What is the present value of a one-time lump sum payment of $12,500 in 8 years' time if the discount rate is 3%? The bank
- What is the present value of a one-time lump sum payment of $12,500 in 8 years' time if the discount rate is 3%?
- The bank advertises a mortgage for 6 percent. Considering the way mortgage rates (semi-annually) are calculated:
(i) What is the effective monthly rate?
(ii) If I take out a mortgage of $350,000 amortized over 20 years, how much will my monthly payment be? Is this more or less than 2 times the bi-weekly payment?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
