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6

Finance

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6.    You purchase a car costing $35,000, and you finance it through a 6 year loan at 5% interest. amortization schedule for the first 6 months of car payments.

 

Mo.

Payment

Interest

Principal

Principal Balance

1

 

 

 

 

2

 

 

 

 

3

 

 

 

 

4

 

 

 

 

5

 

 

 

 

6

 

 

 

 

 

 

7.    What is the future value of a 6-year ordinary annuity of $1500 if the appropriate interest rate is 8%? What is the present value of the annuity? What would the future and present values be if the annuity were an annuity due?

FV=

PV=

FVdue=

PVdue=