1a) What would be the sum of all the payments made (i.e., total $s paid over the 30 years, ignoring time value) on the following house mortgage? Loan amount is $178,000 with an interest rate of 6.0% per annum, term of 30 years, and monthly payments. (Round to nearest penny and enter, for example, as 123456.78)
1b)
What is the present value of the following set of cash flows if
the discount rate is 11.1%? (the cash flows occur at the end of
each period) (round answer to nearest penny and enter in the
following format 12345.67)
Year 0 cash flow = -3400 (a negative cash flow)
Year 1 cash flow = 300
Year 2 cash flow = 1200
Year 3 cash flow = 1800
Year 4 cash flow = 2000
1c) What is the future value at the end of year 3 of the
following set of cash flows if the interest rate is 8%? (the cash
flows occur at the end of each period) (round answer to nearest
penny and enter in the following format 12345.67)
Year 0 cash flow = -2200 a negative cash flow
Year 1 cash flow = 1800
Year 2 cash flow = 2000
Year 3 cash flow = 1000
ANSWER
1a) The sum of all payments done = $384,192
1b)Present value of cash flows = 467.54
1c) Future value of cashflows = 2488.15
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