Calculations Flashcards
1
Q
How do I calculate the market interest when:
- I have future value
- they tell me it was bought at… (97)
- they give me the stated rate
- I also have N
A
So I have
FV - 12,000,000
PV = 12,000,000 x 97
N = 15
PMT = 660,000 (because I know the stated rate)
I = ?
(I put all the above info in the calculator and NOW I need to say that FV and PMT are an outflow of cash - I will change the sign to minus)
