TABLE 8-1 Andre’s Loan Schedule
120,000.00$
6.25%
5
60
2,000.00$
139,062.50$
Payment
Number
Monthly Principal
Payment
Monthly Interest
Payment
Monthly Loan
Payment
Loan Balance
12,000.00$ 625.00$ 2,625.00$ 118,000.00$
22,000.00 614.58 2,614.58$ 116,000.00
82,000.00 552.08 2,552.08$ 104,000.00
92,000.00 541.67 2,541.67$ 102,000.00
10 2,000.00 531.25 2,531.25$ 100,000.00
22 2,000.00 406.25 2,406.25$ 76,000.00
23 2,000.00 395.83 2,395.83$ 74,000.00
24 2,000.00 385.42 2,385.42$ 72,000.00
25 2,000.00 375.00 2,375.00$ 70,000.00
37 2,000.00 250.00 2,250.00$ 46,000.00
38 2,000.00 239.58 2,239.58$ 44,000.00
39 2,000.00 229.17 2,229.17$ 42,000.00
40 2,000.00 218.75 2,218.75$ 40,000.00
41 2,000.00 208.33 2,208.33$ 38,000.00
42 2,000.00 197.92 2,197.92$ 36,000.00
43 2,000.00 187.50 2,187.50$ 34,000.00
Monthly Principal Payment=
Total Interest Paid=
Principal Amount of loan=
Annual Interest Rate=
Number of Years=
Number of Monthly Payments=
52 2,000.00 93.75 2,093.75$ 16,000.00
53 2,000.00 83.33 2,083.33$ 14,000.00
54 2,000.00 72.92 2,072.92$ 12,000.00
55 2,000.00 62.50 2,062.50$ 10,000.00
Annual Interest= 6.00%
Account Balance
Year Present Value PV Factor Future Value Present Value FV Factor After Payout
0 4,000,000.00$ 1.0000 4,000,000$ 4,000,000.00$ 1.0000 13,188,211.48$
1 1,886,792.45 0.9434 2,000,000 13,188,211.48$ 106.00% 13,979,504.16$
TABLE 8-2 Present Value of a Contract
Amortization table for problem 8-3a
250,000.00$
7.50%
5
60
4,166.67$
Payment
Number
Monthly
Principal
Payment
Monthly
Interest
Payment
Monthly
Loan
Payment
Loan
Balance
14,166.67$ 1,562.50$ 5,729.17$ 245,833.33$
24,166.67$ 1,536.46 5,703.13$ 241,666.67
34,166.67$ 1,510.42 5,677.08$ 237,500.00
44,166.67$ 1,484.38 5,651.04$ 233,333.33
16 4,166.67$ 1,171.88 5,338.54$ 183,333.33
17 4,166.67$ 1,145.83 5,312.50$ 179,166.67
18 4,166.67$ 1,119.79 5,286.46$ 175,000.00
19 4,166.67$ 1,093.75 5,260.42$ 170,833.33
31 4,166.67$ 781.25 4,947.92$ 120,833.33
32 4,166.67$ 755.21 4,921.88$ 116,666.67
33 4,166.67$ 729.17 4,895.83$ 112,500.00
34 4,166.67$ 703.13 4,869.79$ 108,333.33
Monthly Principal Payment=
Principal Amount of loan=
Annual Interest Rate=
Number of Years=
Number of Monthly Payments=
43 4,166.67$ 468.75 4,635.42$ 70,833.33
44 4,166.67$ 442.71 4,609.38$ 66,666.67
45 4,166.67$ 416.67 4,583.33$ 62,500.00
46 4,166.67$ 390.63 4,557.29$ 58,333.33
47 4,166.67$ 364.58 4,531.25$ 54,166.67
48 4,166.67$ 338.54 4,505.21$ 50,000.00
49 4,166.67$ 312.50 4,479.17$ 45,833.33
Solution to Chapter 8, Problem 14
Annual
Interest=
6.00%
Year Deposit FV Factor
Future
Value
15,000.00$ 1.3382 6,691.13$
27,500.00 1.2625 9,468.58
Solution to Chapter 8, Problem 15
Interest
rate =
4.00%
Contract
Year
Future
Value
PVF Present Value
0$2,000,000 1.0000 $2,000,000.00
1$1,500,000 0.9615 $1,442,307.69
Future Value of a Lump Sum = Present Value (FVLSF)
TVM CALCULATOR FV PV FVLSF
10,568.52 5,000.00 2.1137
number of periods per year =
Table B-1 Table B-2 Table B-3 Table B-4 Table B-5 Table B-6
Periods
Rate/period
FVLSF PVLSF FVOAF FVADF PVOAF PVADF
180 0.0042 2.1137 0.4731 267.2889 268.4026 126.4552 126.9821
EFFECTIVE RATE=
0.0512 5.12%
Future Value of An Ordinary Annuity = Annuity (FVOAF)
Just change the numbers highlighted in yellow. FVOA A FVOAF
1,336,444.72 5,000.00 267.2889
Future Value of An Annuity Due = Annuity (FVADF)
Definitions FVAD A FVADF
Periods Number of periods (years, months,etc.) 119,170.78 444.00 268.4026
Rate Interest rate per period Present Value of An Ordinary Annuity = Annuity (PVOAF)
FVLS Future Value of a Lump Sum Factor PVOA A PVOAF
PVLS Present Value of a Lump Sum Factor 53,313.53 421.60 126.4552
PVOA Present Value of an Ordinary Annuity Factor Loan Payment (Annuity) = Present Value of An Ordinary Annuity ÷ (PVOAF)
Instructions: The yellow cells are used to enter data. The table number corresponds to the tables in Appendix B.