- What is the present value of the following payment stream at an interest rate of 7%; $1000 today, $2000 at the end of year 1, $5000 at the end of year 3, $6000 at the end of year 5.
P: Present value
CF: Cash Flow
YTM: Yield to Maturity @ one type of interest rate
- What is the present value of perpetuity of $1000 per annum starting immediately offering a 12% interest rate?
PV perpetuity = FV / i
- What is the APR on a 48-month loan on an $18,000 car, if you put $3000 down payment and the monthly payments are $373.28
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Loan Borrowed = ??
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