Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay this money over the next six years by making monthly payments of $2,215.10. What is the interest rate on the loan? Express your answer with annual compounding.
These annual amounts I used to calculate annual tax savings by multiplying annual interest amount by tax rate. In order to be able to compare the amounts received in different years, I found present values of each cash flow. I added up the PVs of tax savings for every year to get total tax savings (all 15 years for option 1 and first 5 years for option 2).
The amount of money that I had spent over one week ended up totaling $100.77. To come up with the amount of money that would be spent in a year if I spent $100.77 for 52 weeks, the total would be $5,240.04. Then to determine the amount of money that would be spent over 25 years, it would be $5,240.04 multiplied by 25 years, and that would be $131,001. That is $131,001 that I spent on completely unnecessary expenses. To determine what $131,001 would equal in todays money it requires to be plugged into an equation, PV=FV/(1+i)^n . “FV” stands for the future value, that is the value that we calculated by multiplying by 25 years, $131,001. The “i” stands for the interest
Lets start with a simple example and lets say we are working with our favorite client, Mr Santa Claus - who is faced each year with the ultimate big data challenge - a level of complexity that implies he has solved many of the challenges that business are facing. He is faced with big data challenges with 3 key streams as: i. demand, ii. supply and iii. fulfillment.
8. If you want to purchase a home. You have $15,000 to put down. All you can afford is $1,500.00 per month and you do not want to finance for more than 15 years @ 6% interest, (your taxes will be $85.00 per month and insurance $200.00 a month), what is the amount you can pay for your home? (Show all your work)
According to the calculation above, assuming that the present value is 100, S&P 500 will have higher return on the triple- leveraged ETF than the unlevered ETF. This shows us that although sometimes the triple-leveraged ETF would be more risky on loss but it can still earn more.
Given the warnings of the housing market softening, it would be safe to assume a 4% growth rate. Finally, tax savings are calculated based on deductions from mortgage interest payments and property taxes multiplied by the Lintons’ marginal tax rate of 33%.
IPmt(0.0525/1, 4, 10*1, 6500) MS Excel: PPMT Function (WS, VBA) • In Excel, the PPMT function returns the payment on the principal for a particular payment based on an interest rate and a constant payment schedule. • The syntax for the PPMT function is: • PPMT( interest_rate, period, number_payments, PV, [FV], [Type] ) • interest_rate is the interest rate for the loan. • period is the period used to determine how much principal has been repaid. Period must be a value between 1 and number_payments.