Give the answer for the following Excel Function. FV(8%. 10. 2000. 10000) PMT(12
ID: 1209239 • Letter: G
Question
Give the answer for the following Excel Function. FV(8%. 10. 2000. 10000) PMT(12%. 30. 16000.): PV(9%. 15. 1000. 700) RATE(9.400,,-4995): By referring to the following statement, use excel to set up the format for excel built-in function to solve the problem. We make two assumptions in here The rate of return or interest rate is 8% annually. The appraised value of Toyota Corolla at the end of 3rd year is $16,000. Buy Toyota Corolla for $8,000 down payment and make monthly mortgage payment of $360 for 3 years(or 36 months) Lease Toyota Corolla for monthly $240 for 3 years. By using AW method, choose the better option. By using PW method, choose the better option. By using FW method, choose the better option.Explanation / Answer
Ans:
=FV(rate, N, [pmt], [pv], [type])
Rate = Interest Rate per compound period – for this situation a month to month rate (6% for each annum/12 months)
N = the quantity of periods you will make installments (2 years x 12 months)
[pmt] = the measure of the installment (spoke to as a negative number)
[pv] = the sum we will begin with (additionally a negative number)
[type] = when installments are kept; 0 = end of every period, 1 = start of every period.
a) $50,562.37
b) $1986.30
c)$8,252.87
d) - 6%
2)
Interest rate = 8% annually
the appraised value of toyota corolla at 3 rd year is $ 16,000
downpayment = $8000 , monthly mortgage payment of $360 for 36 months (3 years)
a) Annual worth = AW(i%)=R-E-CR(i%)
Present Worth (PW) Method
1. Figure what might as well be called the evaluated money streams
utilizing the MAR as the financing cost.
2. On the off chance that PW(MARR) ³ 0, then the venture is beneficial.
On the off chance that PW(MARR) < 0, then the venture is not beneficial
PW(20%) =
- 50,000 + (20,000 – 2,500)(P|A,20%,5) + 10,000(P|F,20%,5)
= $6,354.50
Since PW(20%) ³ 0, the venture is gainful.
Future Worth (FW) Method
1. Figure what might as well be called the evaluated money streams utilizing
the MARR as the financing cost.
2. On the off chance that FW(MARR) ³0, then the venture is beneficial.
On the off chance that FW(MARR)<0, then the venture is not beneficial.
Ch. 4 Example – FW Method
FW(20%) =
- 50,000(F|P,20%,5)+(20,000-2,500)(F|A,20%,5)+10,000
= $15,813
Since FW(20%)³0, the undertaking is productive.
Yearly Worth (AW) Method
AW(i%) = R - E - CR(i%) (Eqn. 4-4)
where
R = yearly equal incomes
E = yearly equal costs
CR = yearly equal capital recuperation cost
CR is the equal uniform yearly cost of capital contributed. CR incorporates
the misfortune in estimation of the advantage and interest(MARR) on contributed capital.
CR(i%) = I (A/P,i%,N) - S (A/F,i%,N) (Eqn. 4-5)
Where I% = MARR per interest period (normally years)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.