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  • Interest Rates Exercises Solutions

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    Meryem Moutie
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    1. This document contains examples of calculating present value, future value, annuity factors, and effective annual rates for various loans and investments over different time periods and interest rates. 2. Interest rates provided range from 0.5% to 15.97% for periods from 6 months to 30 years. 3. Annuity factors, effective annual rates, present values, future values, and compounding amounts are calculated and compared for loans with principles from €8,000 to €100,000.

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    Interest_rates_exercises_solutions

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    1. This document contains examples of calculating present value, future value, annuity factors, and effective annual rates for various loans and investments over different time periods and interest rates. 2. Interest rates provided range from 0.5% to 15.97% for periods from 6 months to 30 years. 3. Annuity factors, effective annual rates, present values, future values, and compounding amounts are calculated and compared for loans with principles from €8,000 to €100,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views2 pages

    Interest Rates Exercises Solutions

    Uploaded by

    Meryem Moutie
    1. This document contains examples of calculating present value, future value, annuity factors, and effective annual rates for various loans and investments over different time periods and interest rates. 2. Interest rates provided range from 0.5% to 15.97% for periods from 6 months to 30 years. 3. Annuity factors, effective annual rates, present values, future values, and compounding amounts are calculated and compared for loans with principles from €8,000 to €100,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    1.

    Price Money 43
    EAR 8%
    T 42
    CF 1
    upfront 14

    Annuity Factor 12.01 12.01


    PV 12.01
    Final 13.01 <14 you prefer upfront payment

    2.

    EAR 5% 15.76%
    EAR 3 years
    2.50% 6 months 5.06% 15.97% 15.97%
    7.50% 18 months 4.94% 15.56% 15.563% 15.563%
    0.50% month 6.17% 19.67% 19.67%

    3.

    APR 10.00%
    monthly rate 0.83%

    EAR 10.47%

    APR 9%
    daily rate 0.025%

    EAR 9.42%

    APR 10%
    Annual rate 10%

    EAR 10%

    4.

    Loan 100000
    r 8%
    T 10

    Annuity Factor 6.7100813989 6.710


    C 14902.94887 € -14,902.95

    5.

    Loan 8000
    APR 6%
    monthly IR 0.5%
    T 60 months
    5 years
    Annuity Factor 51.7 € 51.73
    Monthly C 154.7 check € -154.66
    8,000.0
    EAR 6.17%
    Annuity Factor 4.1932065347 4.1932
    Annual C 1907.8478329 € -1,907.85

    6.

    Future Value 60000


    T 18
    EAR 7%

    Annuity Factor 10.05908691 10.059


    Coumpouding 3.3799322757
    33.99903251
    Annual saving 1764.7560995 € -1,764.76

    7.

    CF 10000
    T 30
    EAR 10%

    Annuity Factor 9.426914467 9.427


    Coumpounding 17.449402269
    PV 94269.14467
    FV 1644940.23 € 1,644,940.23

    8.

    g 5%

    Growing Annuity Factor 15.046314701


    PV 150463.14701
    FV 2625491.9787

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