Question: EX5 Exercise 5 If you purchase a machine and borrow $40000, what will your approximate monthly payment be if you pay back the loan over

EX5

Exercise 5 If you purchase a machine and borrow $40000, what will your approximate monthly payment be if you pay back the loan over 5 years. Assume a 10% interest rate. 0 $4,444.00 The amount of the payment is the same every period (annuity). The amount you're borrowing is in today's dollars so you'll use the PV of an annuity table. Divide the factor by amount borrowed for the annual PMT. Divide by 12 for the monthly PMT. 8 10 11 Present Value of an Ordinary Annuity of $1 3% 4% 5% 6% 7% 8% 9, 10 , 11, 12, 13% % 15% 16% 17% 18% 19% 20. 0.971 0.362 0.952 0.343 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 19131886 1859 1833 1808 1783 1759 1736 1713 1630 1668 1.647 1626 1605 1585 1566 1547 1528 2829 2775 2723 2673 2.624 2.577 2531 2.487 2444 2402 2.361 2.322 2283 2246 2210 2174 210 2106 3.717 3630 3.546 3.465 3.387 3312 3.240 3.170 3102 3037 2.974 2 914 2.855 2.798 2.743 2690 2639 2589 45804452 4.3294.212 4100 3.993 3.890 3 791 3696 3.605 3.517 3.433 3.352 3274 3199 3 127 3.058 2.991 5.417 5.2425.076 4.917 4.767 4.623 4406 4.355 4.231 4.111 3.990 3.889 3.784 3.685 3589 3490 3.410 3.326 6.230 6.002 5.786 5.562 5.33 5.206 5.033 4 668 4.712 4.564 4423 4288 480 4039 3.922 3 812 3.706 3.605 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.145 4.968 4.799 4639 4487 4 344 4207 4078 3.954 3837 7.786 7.435 7 108 6.802 6.515 6.247 5.905 5.759 5.537 5328* 5.132 4.946 4.772 4.607 4451 4 303 4.163 4031 8530 3.111 7722 7 350 70244 6.710 6418 6.145 5.009 5650 5426 5 216 5 019 4.833 4.659 441 4.333 4.192 9253 8.760 3067887 7499 7139 6.805 6495 5.207 5.939 5.687 5.453 5 234 5029 4836 4.656 4 486 4 327 9.954 9.365 8.863 8.384 7.9437536 7 161 6.814 6.492 6.194 5.918 5660 5.421 5.197 4.988 4.733 4.671 4.439 10 635 9986 9 .394 8.853 8 358 7904 7487 7103 6.750 6.424 6 22 5 842 5583 5 342 5.118 4.910 4 715 4533 1 1296 10.583 9.899 9295 8 745 8.244 7.786 7.357 6.982 5628 5.302 6.002 5.724 5.468 5229 5.000 4.802 4.671 1193811118 0 3809712 9100 559 2061 7.806 7191 611 6462 812 58475 575 5.324 5092 4876 4675 12 561 11652 08380106 9.447 8.851 8313 7824 7379 6.974 6.604 6265 5.9545 668 5 405 512 493 4.730 13 166 12 166 11274 10.477 9.763 9.122 8.544 8.022 7.549 71206.729 6.373 6.047 5.749 5.475 5.222 4.990 4775 13.754 12.659 11.580 10.828 10.059 9 372 8 756 8201 7.702 7250 6.840 6.457 6.1285 918 55 5 2735033 4812 14 324 13. 134 12.085 11158 10.3069 .604 8950 8.365 7.839 7366 6.938 6.550 5.199 5 877 5 534 5315 5.070 4.843 14.877 13.530 12.462 11470 10.54 9.8109.129 8.51474963 7463 7025 6.623 6.259 5.323 5.628 5.353 511 4870 1413 5622 14 0342 783 11 654 30.675 9823 9077842278437330 5873 54646097 5.766 5467 5195 4948 13.600 17.29215.372 13.765 12.409 11258 0.274 9.427 8.694 8.055 7496 7003 6566 6.177 5 829 5517 5235 4.979 2148718.665 16.34 14.498 12.91811655 10.567 9.644 8855 8.176 7586 7.070 6.617 6.215 5.858 5.539 S 251 4.992 - - - 14 15 16 17 18 19 20 21 23 25

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