Question

QUESTION 7 An entrepreneur bomo s S O today. The interest rate is 8%. Finaly, the loan needs to be paid offin equal annual instal ments over the next 10 yoars, starting one year from today. How much will the entrepreneur have to pay each year? $44,709 $48,101 $38,810 $33,290 QUESTION trate s 8% How much sho 5 not ea Assume that the discou you slari saving at the end of this yoar? Hint first calculate the present value of the $2 million, then use the growing annuity formula to calculate he amount you must save at the end of this year, grows by 5% eachyear that if you save $1 this year,you wil save S1 $8,920 $6,473 $15,200 $57,142

Answer 1

SEE SCREENSHOT. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE. THANK YOU

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum Wrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard CC403 BX Alignment Number Cells BY BZ CA CB CD CE CF 400 401 Q.7 402 403 404 405 406 407 408 409 410 Q.8 411 412 413 414 415 416 417 418 LOAN PVA RATE YEARS n 300000 8% 10 300000-A/0.08 (1-(1/(1+0.08)A10)) 300000- A (6.7100814) 44709 FUTURE VALUE (FVGA) RATE (r) GROWTH RATE (g) YEARS (n) 2000000 8% 5% 35 FUTURE VALUE OF GROWING ANNUITY 2000000- P ((1+0.08)A35 -(1+0.05)A35)/(0.08-0.05) 000000 P(308.9776309) P = First Payment r = rate per period g grouth rate n = number oj perl()ds 6473 제 トト11 CALCULATOR | LOAN OPTIONS fv. ann CAP STRU VALUE BOX , DILUTION DOLLAR COST AVG MORTGAGE / EXPO Sheet1 . Sheet2. Shel- III 13:55 24-01-2019