Which of the following types of pronouncements are intended to establish the objectives and concepts that the FASB will use in d
1 answer:
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Answer:
At 11.14% interest rate we need to invest 8,650.71 today
At 5.57% interest rate we need to invest 92,090.97 today
Explanation:
We will calculate the present value of 1,000,000 at 11.14% for 44 years
and at 5.57% for 44 years
Maturity 1,000,000.00
time 44 years
if rate = 11.4% = 0.114
PV 8,650.71
if rate = 5.57% = 0.0557
PV 92,090.97
Answer: 40.7 years
Explanation:
You can use Excel to sold for this using the NPER function.
Rate = 10.2% / 12 months = 0.85%
Payment is $305 per month
Present value is $0
Future value is $2,200,000
Number of periods = 488.1979353
In years this is:
= 488.1979353 / 12
= 40.7 years
