will you jusr check the msth for f & g please
94 95 g. How would the PV and FV of the annuity change if it were an annuity due rather than an ordinary annuity? 96 97 98 Use the "type" box in the function wizard (omitted or zero for end of period, and one for annuity due) 99 100 PV annuity due (Use function wizard (PV) - 101 102 Exactly the same adjustment is made to find the FV of the annuity due. 103 104 FV annuity due (use function wizard (FV) - 105 i- n = 06 27 h. What would the FV and the PV for problems a and c be if the interest rate were 7.5% with 08 semiannual compounding rather than 7.5% with annual compounding? 09 10 Part a. FV with semiannual compounding: Orig. Inputs: New Inputs: 111 Inputs: PV- $15,500 $15,500 112 7.50% 3.75% 113 5 10 114 115 Wizard (FV): $90,030.06 116 117 Part c. PV with semiannual compounding: Orig. Inputs: New Inputs: 118 Inputs: FV $15,500 $15,500 119 7.50% 3.75% 120 5 10 121 122 Wizard (PV): $10,796.66 123 124 125 i Il- 124 125 126 127 i. Find the PV of an investment that makes the following end-of-year payments. The 128 interest rate is 8%. 129 130 Year Payment 131 1 S100 132 2 S200 133 3 S400 134 135 Rate = 8% 136 137 To find the PV, use the NPV function: PV = 140 159 141 i. Suppose you bought a house and took out a mortgage for $150,000. The interest rate is 8%, and 142 you must amortize the loan over 10 years with equal end-of-year payments. Set up an amortization 143 schedule that shows the annual payments and the amount of each payment that goes to pay off the 144principal and the amount that constitutes interest expegse to the borrower and interest income to 145 the lender 146 147 Original amount of mortgage: $150,000 148 Term of mortgage: 10 149 Interest rate: 8% 150 151 Annual payment (use PMT function 152 153 Observe the amortization of this mortgage 154 Year Beg. Amt. Pmt Interest Principal End. Bal. 155 1 $0.00 ####### $12,000.00 tot 156 2 $162,000.00 $0.00 ######## $12,960.00 ######### 157 3 $174,960.00 $0.00 ####### $13,996.80 ######## 158 4 $188.956.80 $0.00 $ 15,116.54 $15.116.54 ######## 5 $204,073.34 $0.00 ####### $16,325.87 ######## 160 6 $220,399.21 $0.00 $17,631.94 $17.631.94 $238,031. 15 161 7 $238,031. 15 $0.00 ####### $19,042.49 ######## 162 8 $257,073.64 $0.00 ####################### 163 9 $277,639.53 $0.00 $ 22,211.16 -$22,211.16 #18888888 164 10 $299,850.69 $0.00 #8181818 #1############## 165 166 Extensions i. This graph shows how the payments are divided between interest and 167 principal repayment over time. 168 159 Breakdown of payments 170 171 $30,000.00 172 $20,000.00 173 174 $10,000.00 175 $ 176 Principal $10,000.00) 177 Interest 178 $20,000.00) 179 $30,000.00) 180 5 6 7 8 9 10 181 Years 182 4 183 15 Ready 82 83 f. Find the PV of an annuity that pays $11,000 at the end of each of the next 5 years if the interest rate 84 is 15%. Then find the FV of that same annuity. 85 86 Inputs: PMIT $11,000 87 N 5 88 I 15% 89 90 PV: Use function wizard (PV) PV $36,873.71 91 92 FV: Use function wizard (FV) FV $74,166.19 93 94 95 g. How would the PV and FV of the annuity change if it were an annuity due rather than an ordinary 96 annuity? 97 98 Use the "type" box in the function wizard (omitted or zero for end of period, and one for annuity due) 99 100 PV annuity due (Use function wizard (PV) - 42.404.76 101 102 Exactly the same adjustment is made to find the FV of the annuity due. 103 104 FV annuity due (use function wizard (FV) = 85,291.12 105
