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  • 122 Activity.20 NPV

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    Hrvoje Eror
    6 views2 pages
    You borrow $10,000 at 12% annual interest for 5 years to purchase a car. Using the payment formula, with a principal (P) of $10,000, an interest rate (i) of 0.12/12=0.01 per month, and a term (n) of 5*12=60 months, the monthly payments are $252.08.

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    You borrow $10,000 at 12% annual interest for 5 years to purchase a car. Using the payment formula, with a principal (P) of $10,000, an interest rate (i) of 0.12/12=0.01 per month, and a term (n) of 5*12=60 months, the monthly payments are $252.08.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    6 views2 pages

    122 Activity.20 NPV

    Uploaded by

    Hrvoje Eror
    You borrow $10,000 at 12% annual interest for 5 years to purchase a car. Using the payment formula, with a principal (P) of $10,000, an interest rate (i) of 0.12/12=0.01 per month, and a term (n) of 5*12=60 months, the monthly payments are $252.08.

    Copyright:

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

    Class Exercise

    NPV
    Exercise

     You borrow $10,000 at 12% per year for 5-years


    to purchase a car. What are your monthly
    payments?
    P=A[((1+i)n-1)/i(1+i)n]

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