HOMEWORK #3 Time Value of Money
Question # 00478816
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Updated on: 02/07/2017 12:11 AM Due on: 02/07/2017
Please use Excel to answer the following questions. Answer each question in the space provided. 1 Calculate the present value of 120 monthly payments of $3,000 at an annual
rate of 8%. The payments are made at the end of each month. 2 You are financing a new car with a 3 year loan at 5% annual interest, compounded
monthly. The amount you are borrowing is $16,000. What are your monthly payments? 3 What is the maximum you can finance if you can only afford a monthly payment
of $200? The interest rate is 5%. The term is three years. 4 If you deposit $5,000 in a savings account that pays 8% annual interest compounded
monthly, and make no other deposits to the account, how much will you have
after 5 years? 5 In addition to the $5,000 as specified in the above problem, how much will you
have at the end of 5 years if you also deposit an additional $200 at the end of
each month for the entire 5 year period? 6 In addition to the $5,000 as specified in above problem #4, how much will you
have at the end of 5 years if you also deposit an additional $200 at the beginning
of each month for the entire 5 year period? 7 You will be making quarterly payments on your $10,000 loan. The interest rate
is 8%. How much are your payments if you plan on paying off the loan in 5 years? 8 Calculate the present value of 120 monthly payments of $1,000 at an annual
rate of 12%. The payments are made at the beginning of each month. 9 In five years we need $125,000. How much do we deposit today if the annual
interest rate is 8%, compounded annually? 10 In five years we need $25,000. How much do we deposit today if the annual
interest rate is 8%, compounded monthly? 11 Create a monthly loan amortization schedule for the following loan:
The amount to borrow is:
Term of the loan:
Annual interest rate:
Loan payments are made monthly. 15,000.00
3 years
6% Please start the loan amortization schedule here:
rate of 8%. The payments are made at the end of each month. 2 You are financing a new car with a 3 year loan at 5% annual interest, compounded
monthly. The amount you are borrowing is $16,000. What are your monthly payments? 3 What is the maximum you can finance if you can only afford a monthly payment
of $200? The interest rate is 5%. The term is three years. 4 If you deposit $5,000 in a savings account that pays 8% annual interest compounded
monthly, and make no other deposits to the account, how much will you have
after 5 years? 5 In addition to the $5,000 as specified in the above problem, how much will you
have at the end of 5 years if you also deposit an additional $200 at the end of
each month for the entire 5 year period? 6 In addition to the $5,000 as specified in above problem #4, how much will you
have at the end of 5 years if you also deposit an additional $200 at the beginning
of each month for the entire 5 year period? 7 You will be making quarterly payments on your $10,000 loan. The interest rate
is 8%. How much are your payments if you plan on paying off the loan in 5 years? 8 Calculate the present value of 120 monthly payments of $1,000 at an annual
rate of 12%. The payments are made at the beginning of each month. 9 In five years we need $125,000. How much do we deposit today if the annual
interest rate is 8%, compounded annually? 10 In five years we need $25,000. How much do we deposit today if the annual
interest rate is 8%, compounded monthly? 11 Create a monthly loan amortization schedule for the following loan:
The amount to borrow is:
Term of the loan:
Annual interest rate:
Loan payments are made monthly. 15,000.00
3 years
6% Please start the loan amortization schedule here:
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Rating:
/5
Solution: HOMEWORK #3 Time Value of Money