19 part 4 20 21 present value (amount borrowed) = periodic interest rate = number of compounding periods = 4,500.00 0.0025 48.00 What is the periodic payment (annuity)? 22 23 24 part 5 25 26 present value = future value = number of compounding periods = 16.50 104.00 24.00 What is the periodic interest rate (single payment)? 27 28 29 part 6 30 periodic payment periodic interest rate = number of compounding periods = 1,800.00 0.02 15.00 31 What is the present value of this annuity? 32 33 34 part 7 35 36 present value = future value = periodic interest rate = 25.00 75.00 0.08 how many periods are required for the pv to equal the fv 37 38 39 40 Did you primarily us Excel functions, formulas, book tables, or an on line calculator? 41 42 43 Interest rates are all stated as a decimal