Tuesday, January 1, 2019

Finance Chapter 4 - Question 44 Variable Interest Rates



Excel File


Chapter 4 - 44
Variable Interest Rates
Nper 15 Years
PMT 1750 Month
Rate1 0.114
Nper 7 years
Rate2 0.086
First the last portion of the annuity
PV2 Cash $121,161.48 =PV(C8/12,(C4-C7)*12,-C5)
PV2 Now $54,756.22 =PV(C6/12,C7*12,,-C12)
Then the first part
PV1 Cash $100,960.71 =PV(C6/12,C7*12,-C5)
Total $155,716.92 =C16+C13

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