Answer:
Monthly deposit= $1,036.116
Explanation:
Giving the following information:
Future Value (FV)= $900,000
Number of periods= 28*12= 336 months
Interest rate (i)= 6% = 0.06/12= 0.005
<u>To calculate the monthly deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= {900,000*0.005) / [(1.005^336) - 1]
A= $1,036.116
These are individuals, normally affluent, who inject capital for startups in exchange for ownership equality or convertible debt.
If you multiply $299.70x 62- 14,000months you get = 4,581.4 so yeah
Answer:
MIRR = 4.32%
Explanation:
year cash flow
0 -$795,000
1 $375,000
2 -$500,000
3 $600,000
4 $400,000
Since there are 2 cash outflows, the IRR calculation would result in two different answers (1 for every cash outflow), that is why we use the MIRR function in excel.
=MIRR (cash flows, finance rate, reinvestment rate)
=MIRR (-795000 to 400000, 5.5%, 5.5%)
Since we are only given one interest rate, we will use it as our finance rate and our reinvestment rate.
MIRR = 4.32%
