Scribd Logo
Upload

Welcome to Scribd!

  • PV Example 01

    Uploaded by

    Mithun Nair M
    8 views1 page
    Present value of a Car Loan Notes on Solution 20,000 Amount of loan Annual payments 5,000 per year for 5 years, paid at the end of the year 7% Interest rate 20,000 1 -- each value is B / (1+i)T -- sum of all values.

    Original Description:

    Original Title

    Pv Example 01

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Present value of a Car Loan Notes on Solution 20,000 Amount of loan Annual payments 5,000 per year for 5 years, paid at the end of the year 7% Interest rate 20,000 1 -- each value is B / (1+i)T -- sum of all values.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views1 page

    PV Example 01

    Uploaded by

    Mithun Nair M
    Present value of a Car Loan Notes on Solution 20,000 Amount of loan Annual payments 5,000 per year for 5 years, paid at the end of the year 7% Interest rate 20,000 1 -- each value is B / (1+i)T -- sum of all values.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Present Value of a Car Loan

    Notes on Solution
    20,000
    Amount of loan
    Annual payments 5,000 per year for 5 years, paid at the end of the year
    7%
    Interest rate
    20,000
    1

    0
    5,000 5,000 5,000 5,000 5,000
    yr
    0
    1
    2
    3
    4
    5
    Total PV

    pmt
    20,000
    -5,000
    -5,000
    -5,000
    -5,000
    -5,000

    pv
    20,000
    -4,673
    -4,367
    -4,081
    -3,814
    -3,565
    -501

    <-- each value is B/(1+i)^T

    <-- sum of above

    You might also like