Which of these is the interest rate that is actually observed in financial markets? real risk-free rate real interest rates nomi
1 answer:
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Answer:
Monthly payments = $1,234.54
Explanation:
given data
Future value = $1,000,000
time = 25 year = 25 × 12 = 300 months
rate = 7 % annual = = 0.5833% monthly
to find out
Monthly payments
solution
we will apply here future value formula that is express as
Future value = Monthly payments × ..........1
put here value we get
Future value = Monthly payments ×
1,000,000 = Monthly payments ×
solve it we get
Monthly payments = $1,234.54