You want to buy a car The basic model costs $99,400 You dont have enough money to buy the car, dad says that he will lend you the entire amount if you sign a note saying that you will pay him $115,000 in 3 years What is the interest rate on this loan I got 5 I saw other posts that got 4 98 I think my excel might of just rounded up Finding an unknown i Inputs Years 3 Purchase Price 99400 Future Payment 115000 Output i 5 PV(3,0,99400,115000) Your wealthy relative has left you $2 million in trust you can access when youre 30 (in 6 years) If interest rates are about 5 , what is this worth to you now Use the Principles of Spreadsheet Design to set up and solve this problem I got $1,492,430 79 is that correct PV of a single sum Inputs Interest rate 0 05 Years 6 Future Payment 2,000,000 Output Present Value ($1,492,430 79) PV(0 05,6,0,2000000)

The Answer is in the image, click to view ...

Question: You want to buy a car. The basic model costs $99,400. You dont have enough money to buy the car, dad says that he will

You want to buy a car. The basic model costs $99,400. You dont have enough money to buy the car, dad says that he will lend you the entire amount if you sign a note saying that you will pay him $115,000 in 3 years. What is the interest rate on this loan? ***I got 5% - I saw other posts that got 4.98% I think my excel might of just rounded up

Finding an unknown i
Inputs
Years	3
Purchase Price	99400
Future Payment	115000

Output
i	5%

=PV(3,0,99400,115000)

Your wealthy relative has left you $2 million in trust you can access when youre 30 (in 6 years). If interest rates are about 5%, what is this worth to you now? Use the Principles of Spreadsheet Design to set up and solve this problem ***I got $1,492,430.79 - is that correct?

PV of a single sum
Inputs
Interest rate	0.05
Years	6
Future Payment	2,000,000

Output
Present Value	($1,492,430.79)

=PV(0.05,6,0,2000000)

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 Accounting Questions!

3. This is a long question, which should give you enough practice in computing mixedstrategy equilibria. Suppose Ben and Jerry play the following game, in which Ben is the row player and Jerry is the...

Need help with these discussion postings (in a document) and assignments (all in separate files), all directions are included as well. FINANCE DIRECTIONS Need to provide 1 original post substantial...

The Goal: give a research essay sample for the following prompt: The theme of Research Proposal In the book, "Utopia for Realists by Rutger Bregman is ---"Why we should give free money to everyone"....

answer only question 10 and 11 AsAp .. i have attached the answer to Q 9 .. COMPREHENSIVE CASE 2 Chapters 5-10 Metcalf Furniture Corporation produces sofas, recliners, and lounge chairs. Metcalf is...

Please see the attachment for the full problem (if needed). I am stuck on the last question, which is #11. Thank you! Sawmill: Joint manufacturing costs: $900,000 Quantity Produced Price at Split-Off...

Hi, Im Natalie. So, I'm a car seller here and welcome to, welcome to our, showroom and, what are you looking for today and how can I help you? Uh, Im looking for a car, like a basic car only. Not...

Chapter 3 Describe and explain the terms climate sensitivity, fat tail, and low beta, and how they relate to climate change. What are the estimated economic costs of global warming? Can we trust...

A. Prepare necessary adjustments for depreciation expense and other expenses for the month B. Prepare the income statement for JJ Asian Cuisine for the month ending 31 July C. Prepare the balance...

1: Describe and explain the terms climate sensitivity, fat tail, and low beta, and how they relate to climate change. 2: What are the estimated economic costs of global warming? Can we trust these...

What are Clebsh-Gordan coefficient?Explain their significance.

Most entrepreneurs learn the most important skills they need after age 21. How does this affect your outlook and plans?

A population of a particular yeast cell develops with a constant relative growth rate of . 4 9 6 3 per hour. The initial population consists of 3 . 2 million cells. Find population size after 5 hours.

A local project being analyzed by PERT has 32 activities, 8 of which are on the critical path. If the estimated time along the critical path is 55 days with a project variance of 25, the probability...

The annual holding cost as a percentage is 15%, cost per order is $50 and annual demand is 9000 units. The supplier offers the following quantity discount: 1-999 units, the unit cost is $10,...

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2021. Management has the positive intent and ability to hold the bonds...

A project whose critical path has an estimated time of 58 days with a variance of 25 has a 35% chance that the project will be completed before day ______ (rounded to the nearest day). Select one: a....

9. A house worth $350,000 when purchased was worth $335,000 after the first year and $320,000 after the second year. If the economy does not pick up and this trend continues, what will be the value...

- How can we help employees find meaning and purpose in their work? -Whose job will it be to manage the robots predicted to replace 30 per cent of job roles in the not-too-distant future?

What might be problems associated with withholding a pay adjustment for Roger under these circumstances?

What items are included in the discretionary benefit of paid time off category?

Do you believe that there is a maximum rate of pay for every job in an organization, regardless of how well the job is being performed? Justify your position. Assume that Marianne is earning the...