Page down to the portion of this screen that contains the financial calculator.

Page down to the portion of this screen that contains the financial calculator.

1. To determine the FV of a fixed amount, enter the following:

Into PV, enter -1000; into np, enter 1; into pmt, enter 0; and, into ir, enter 8.

Now click on Calculate FV, and 1080.00 should appear in the FV window.

2. Determine FV for each of the following compounding periods by changing only the following:

a. np to 2, and ir to 8/2

b. np to 12, and ir to 8/12

c. np to 52, and ir to 8/52

3. To determine the PV of a fixed amount, enter the following: Into FV, 1080; into np, 1; into pmt, 0; and, into ir, 8. Now click on Calculate PV. What is the PV?

4. To determine the FV of an annuity, enter the following: Into PV, 0; into FV, 0; into np, 12; into pmt, 1000; and, into ir, 8. Now click on Calculate FV. What is the FV?

5. To determine the PV of an annuity, change only the FV setting to 0; keep the other entries the same as in question 4. Click on Calculate PV. What is the PV?

6. Check your answers for questions 4 and 5 by using the techniques discussed in this chapter.

7. Enter the following into the mortgage calculator: Loan amount, 100000; duration in years, 30; and interest 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.

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