Lecture Notes on Time Value of Money
The interest rate equals 15% APR, compounded monthly. The loan is for 12 years. What is the amount of the loan? Answer: PV = $26,651. 3. Retire with a million: How much would must you deposit monthly in an account paying 6% a year [APR], compounded monthly, to accumulate $1,000,000 by age 65 beginning at age 30? Answer: PMT = $701.90 ................
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