Write down a formula for the outstanding principal P, after k payments, of a debt A being amortized by equal payments R over n equal periods with an interest rate i per conversion period.
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- To compute for the annual interest payments of a loan, the principal amount is multiplied by: a. Market rate b. Nominal rate c. Amortized rate d. Effective rateFind the following: a. interest rate per conversion period b. future amount c. compound interest d. conversion period per year e. total number of conversion periodFind the following: a. total number of conversion period b. conversion period per year c. interest rate per conversion period d. principal e. compound interest
- When the total interest charged is linearly proportional to the initial amount of the loan, the interest rate and the number of interest periods, the interest is said to be a.) Effective b.) Continuous Compounding c.) Simple d.) CompoundingThe Interest earned over a specified period of time is expressed a percentage of the original amount and is called rate of return. Select one: True False 21The formula in getting the compound interest given the present value and maturity value is __________
- Prove: FVA of an Ordinary Annuity times (1+i) = FVA of an Annuity Due, where i= interest rate. SHow all workWhich of following formulas is used to calculate the present value of a perpetual annuity? Seleccione una: a. P= f / (1+i)^n b. P= f / (i - g) c. P= a / (i - g) d. P= a / (1+i)^n e. F = P * (1+i)^nTo find the present value (PV) of an ordinary annuity, a. the interest is compounded and then subtracted from the FV. O b. each payment is divided by (1+1)* c. each payment is multiplied by (1+1). O d. the future value (FV) is divided by the interest rate. e. the future value is divided by (1+1)*:
- 1. Construct a partial amortization schedule showing the last 2 payments. PMT Setting N I/Y P/Y C/Y PV PMT FV Payment NumberPaymentInterest PaidPrincipal RepaidOutstanding Principal 2. Determine the total amount paid to settle the loan. Show work, not just the answer. 3. Determine the total principal repaid. 4. Determine the total amount of interest paid. Show work, not just the answer.Define the following and provide respective examples;Simple interest Compound interestAnnual Percentage Rate – APR -Also, please provide a definition of a perpetuity and its formulaFor compounding more frequently than annual, the effective interest rate Select one: a. equal to the nominal rate b. depends on the amount borrowed c. is lower than the nominal rate d. is higher than the nominal rate