Solutions to Chapter 1

23. a. This is an annuity problem with PV = (-)80,000, PMT = 600, FV = 0, n = 20 ( 12 = 240 months. Use a financial calculator to find the monthly rate for this annuity: 0.548%. EAR = (1 + 0.00548)12 ( 1 = 0.0678 = 6.78%. b. Using a financial calculator, enter: n = 240, i = 0.5%, FV = 0, PV = (()80,000 and compute PMT = $573.14. 24. a. ................
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