question archive Loan repayments of $1100 at the beginning of each month for 11 year(s) are equivalent to a single payment of $X today (t=0)
Loan repayments of $1100 at the beginning of each month for 11 year(s) are equivalent to a single payment of $X today (t=0)
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Loan repayments of $1100 at the beginning of each month for 11 year(s) are equivalent to a single payment of $X today (t=0). If interest is 14.0% p.a. compounding monthly, then $X is closest to: Select one: O a. $5998.01 O b. $73891.65 O c. $74753.72 O d. $6837.73
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Ans :Correct Option (c) 74753.72
|
Annuity due |
||
|
FV |
0 |
|
|
Payment |
1100 |
|
|
Interest |
14% |
|
|
Periods |
11 |
|
|
Compounding |
12 |
|
|
Type |
1 |
|
|
Present value |
$ 74,753.72 |
|
Annuity due |
||
|
FV |
0 |
|
|
Payment |
1100 |
|
|
Interest |
0.14 |
|
|
Periods |
11 |
|
|
Compounding |
12 |
|
|
Type |
1 |
|
|
Present value |
=PV(O17/O19,O18*O19,-O16,O15,O20) |
