Lecture Notes on Time Value of Money

6. Calculate the present value of $500 per year at 6% per year for 5 years (monthly compounding). n[N] i [I/YR] PV PMT FV 5 6 ? -500 0 PV=$2,106. 7. You borrow $5,000 and repay the loan with 12 equal monthly payments of $500? Calculate the interest rate per month and the APR. n[N] i [I/YR] PV PMT FV 12 ? 5,000 -500 0 i = 2.92% per month. APR ... ................
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