Principles of Managerial Finance

CHAPTER 4 Time Value of Money 211

Remember to check the book’s Web site at

http://www.aw.com/gitman

for additional resources, including additional Web exercises.

Go to Web site http://www.homeowners.com/.Click on Calculatorsin the left column.
Click on Mortgage Calculator.

7. Enter the following into the mortgage calculator: Loan amount, 100000;
   duration in years, 30; andinterest rate, 10. Click on compute payment.
   What is the monthly payment?


8. Calculate the monthly payment for $100,000 loans for 30 years at 8%, 6%,
   4%, and 2%.


9. Calculate the monthly payment for $100,000 loans at 8% for 30 years,
   20 years, 10 years, and 5 years.