Money, Banking, and International Finance

     

1,464.72

7001 0.03^37001 0.03^27001 0.03^1

FV =$

FV =$ + +$ + +$ +

3

(^3)

11. We calculated the present value of

     

294. 10

1 0.01

100

1 0.01

100

1 0.01

100

(^12) + 3 =$

$

+

+

$

+

+

$

PV 0 =

12. We calculate the growth in the savings account for each compounding frequency.

 

 

$ 500 $ 2 , 240. 84

$ 2 , 233. 87

12

$ 5001 0.^05

$ 5001 0. 05 $ 2 , 160. 97

0. 0530

30

1230

30

30

30

  

  

  





FV e

FV

FV

13. We calculate the effective annual interest rate of 12.55% below.

 1 0.^124  1 0. 1255

4

EFF   

14. Using the formula for an ordinary annuity, we calculate the annuity value of $81,990.98
    below:

 

$ 81 , 990. 98

0. 07

1 0. 07 1

$ 2 , 000

20











  

FVT

15. Using the formula for an ordinary annuity, we calculate your annual payments as $4,817.11
    below:

 

$ 4 , 817. 11

1 1 0. 05

0. 05 $ 50 , 000

 ^15 



P ^

16. We calculate monthly mortgage payment of $3,326.51 below:

 

$ 3 , 326. 51

1 1 0. 005833

0. 005833 $ 500 , 000

 ^3012 



P  

17. We calculate the net present value of 43,126.54 rm below: