S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded. Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period. P V = P M T [ 1 − 1 ( 1 + r ) n r ] Here, The present value is “ PV ”. The periodic payments are “ PMT ”. The interest rate is “ r ”. The maturity period of number of years is “ n ”.

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Answer 1

Question

Chapter 4, Problem 24PROB

Summary Introduction

S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[1−1(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

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Answer 2

Question

Chapter 4, Problem 24PROB

Summary Introduction

S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[1−1(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

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Answer 3

Question

Chapter 4, Problem 24PROB

Summary Introduction

S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[1−1(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

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Answer 4

Question

Chapter 4, Problem 24PROB

Summary Introduction

S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[1−1(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

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Answer 5

Chapter 4, Problem 24PROB

Summary Introduction

S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[1−1(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

Answer 6

Chapter 4, Problem 24PROB

Summary Introduction

S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[1−1(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

Answer 7

Chapter 4, Problem 24PROB

Summary Introduction

S has taken 30-year mortgage loan of $220,000, 12 years ago at 6% interest rate monthly compounded.

Present value of an annuity is the current value of future payment or the present value of a series of future periodic payments made at the end of each payment period.

PV=PMT[1−1(1+r)nr]

Here,

The present value is “PV”.

The periodic payments are “PMT”.

The interest rate is “r”.

The maturity period of number of years is “n”.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 4 - Prob. 1PROB Ch. 4 - Prob. 2PROB Ch. 4 - Prob. 3PROB Ch. 4 - Prob. 4PROB Ch. 4 - Prob. 5PROB Ch. 4 - Prob. 6PROB Ch. 4 - Prob. 7PROB Ch. 4 - Prob. 8PROB Ch. 4 - Prob. 9PROB Ch. 4 - Prob. 10PROB

Solution Summary: The author explains the present value of an annuity and the maturity period of the loan.

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Chapter 4 Solutions