g What is the füfüre compounded at 10 percent? What would be the future value if it were an an- nuity due? h. You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments? What is the present value of a $1,000 perpetuity discounted back to the present at 8 percent?
g What is the füfüre compounded at 10 percent? What would be the future value if it were an an- nuity due? h. You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments? What is the present value of a $1,000 perpetuity discounted back to the present at 8 percent?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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