Question: Please can you answer this exercise using excel functions To get started in a new telecommuting position with AB Hammond Engineers, Jane took out a

Please can you answer this exercise using excel functions

 Please can you answer this exercise using excel functions To get

To get started in a new telecommuting position with AB Hammond Engineers, Jane took out a $1000 loan at i=10% per year for 4 years to buy home office equipment. From the lender's perspective, the investment in this young engineer is expected to produce an equivalent net cash flow of $315.47 for each of 4 years. A=$1000(A/P,10%,4)=$315.47 This represents a 10% per year rate of return on the unrecovered balance. Compute the amount of the unrecovered investment for each of the 4 years using (a) the rate of return on the unrecovered balance (the correct basis) and (b) the return on the initial $1000 investment. (c) Explain why all of the initial $1000 amount is not recovered by the final payment in part (b). To get started in a new telecommuting position with AB Hammond Engineers, Jane took out a $1000 loan at i=10% per year for 4 years to buy home office equipment. From the lender's perspective, the investment in this young engineer is expected to produce an equivalent net cash flow of $315.47 for each of 4 years. A=$1000(A/P,10%,4)=$315.47 This represents a 10% per year rate of return on the unrecovered balance. Compute the amount of the unrecovered investment for each of the 4 years using (a) the rate of return on the unrecovered balance (the correct basis) and (b) the return on the initial $1000 investment. (c) Explain why all of the initial $1000 amount is not recovered by the final payment in part (b)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!