Question: create the spreadsheet models shown A.) what is the effect of a change in the interest rate from 8 percent to 10 percent in the

 create the spreadsheet models shown A.) what is the effect ofa change in the interest rate from 8 percent to 10 percent

create the spreadsheet models shown

A.)

what is the effect of a change in the interest rate from 8 percent to 10 percent in the spreadsheet model shown in figure 4.3?

B.)

For the original model in figure 4.3, what interest rate is required to decrease the monthly payments by 20 percent? what change in the loan amount would have the same effect?

C.)

In the spreadsheet shown in figure 4.4, what is the effect of a prepayment of $200 per month? what prepayment would be necessary to pay off the loan in 25 years instead of 30 years?

TABLE 4.3 Investment Problem Decision Table Model State of Nature (Uncontrollable Variables) Alternative Solid Growth (%) Stagnation (%) Inflation (%) Bonds 12.0 Stocks 15.0 -2.0 CDs 6.5 6.0 3.0 6.5 6.5 TABLE 4.4 Decision Under Risk and Its Solution Alternative Solid Growth .50 (%) Stagnation. .30 (%) Inflation, .20(%) Expected Value (%) 3.0 8.4 (maximum) Bonds Stocks CDs 12.0 15.0 6.5 6.0 3.0 6.5 -2.0 8.0 6.5 6.5 TABLE 4.3 Investment Problem Decision Table Model State of Nature (Uncontrollable Variables) Alternative Solid Growth (%) Stagnation (%) Inflation (%) Bonds 12.0 Stocks 15.0 -2.0 CDs 6.5 6.0 3.0 6.5 6.5 TABLE 4.4 Decision Under Risk and Its Solution Alternative Solid Growth .50 (%) Stagnation. .30 (%) Inflation, .20(%) Expected Value (%) 3.0 8.4 (maximum) Bonds Stocks CDs 12.0 15.0 6.5 6.0 3.0 6.5 -2.0 8.0 6.5 6.5

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