http://www.ck12.org Chapter 13. Finance
1.PV=$160, 000 ,R=?,n= 15 ,i= 0. 068
160 , 000 =R·^1 −(^1 +^0.^068 )
− 15
0. 068
R≈$17, 345. 882.PV=$16, 000 ,R=$600,n=?,i=^0. 12199
16 , 000 = 600 ·^1 −
( 1 + 0. 199
12)−n
0. 12199
n= 24. 50 months3.PV=$8, 000 ,R=?,n= 36 ,i=^0.^349912
8 , 000 =R·^1 −
( 1 + 0. 3499
12)− 36
(^349912)
R=$361. 84
Practice
For problems 1-10, find the missing value in each row using the present value for annuities formula.
TABLE13.10:
Problem Num-
ber
PV R n(years) i(annual) Periods
per year
$4,000 7 1.5% 1
$15,575 5 5% 4
$4,500 $300 3% 12
$1,000 12 2% 1
$16,670 10 10% 4
$400 4 2% 12
$315,000 $1,800 5% 12
$500 30 8% 12
$1,000 40 6% 4
$10,000 6 7% 12
Charese obtains a 15 year student loan for $200,000 with 6.8% interest. What will her yearly payments be?
How long will it take Tyler to pay off a $5,000 credit card bill with 21.9% APR if he pays $300 per month?
Note: APR in this case means nominal rate convertible monthly.
What will the monthly payments be on a credit card debt of $5,000 with 24.99% APR if it is paid off over 3
years?
What is the monthly payment of a $300,000 house loan over 30 years with a nominal interest rate of 2%
convertible monthly?