Question

QUESTION 1

Solve the following problem. n=29​; i=0.021​; PMT=$256​; PV =? PV=$
​(Round to two decimal​ places.)

QUESTION 2

PV=$19,621​; n=77​; i=0.023​; PMT=?​; PMT=$ ​(Round to two decimal​ places.)

QUESTION 3

Use the formula for the present value of an ordinary annuity or the amortization formula to solve the following problem. PV=14,000​; i=0.015​; PMT=​$450​; n=​? n= ​(Round up to the nearest​ integer.)

Answer 1

Question 1
Pv=pmt [(1-(1+I)^(-n))÷I]
Pv=256×((1−(1+0.021)^(−29))÷(0.021))
pv=5,518.198

Question 2
PMT=pv÷[(1-(1+I)^(-n))÷I]
PMT=19,621÷((1−(1+0.023)^(
−77))÷(0.023))
=546.09

Question 3
N=log ((1-((pv×I)÷pmt))^(-1))÷log (1+I)
N=log((1−(14,000×0.015)
÷450)^(−1))÷log(1+0.015)
=42.22years

Answer 2

The problem is solved below.

Pv=pmt [(1-(1+I)^(-n))÷I]

Pv=256×((1−(1+0.021)^(−29))÷(0.021))

pv=5,518.198

PMT=pv÷[(1-(1+I)^(-n))÷I]

PMT=19,621÷((1−(1+0.023)^(

−77))÷(0.023))

=546.09

N=log ((1-((pv×I)÷pmt))^(-1))÷log (1+I)

N=log((1−(14,000×0.015)

÷450)^(−1))÷log(1+0.015)

=42.22years

What is amortization?

In business, amortization refers to spreading bills over a couple of durations. The term is used for two separate techniques: amortization of loans and amortization of belongings.

Learn more about amortization here: https://brainly.com/question/10561878

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