1)please show with excel
You buy an annuity which will pay you, and your heirs, $12,000 a year forever. What is the value of this perpetuity today at a 7% discount rate?
200,000.00 |
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222,222.22 |
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120,000.00 |
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171,231.00 |
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171,428.57 |
2)please show how with excel
You make annual payments on a 10 year $21,000 loan with 6% annual interest rate. What is the principle portion of your 3rd payment?
1,065.45 |
||
2,475.38 |
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196.82 |
||
2,852.53 |
||
1,790.15 |
Q-1)
So, the value of this perpetuity today is $171,428.57
Option 5
Q-2)
Calculating the Principal Portion in 3rd year using Excel PPMT function:-
So, the principle portion of your 3rd payment is $1790.15
Option 5.
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