What is the total interest chargeable in each mortgage

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Reference no: EM13105813

1. Find the Present Value of each of the two following sets of cash flow events.

a. Immediate investment (year 0) of $15,000, revenue earned each year from year 1 to year 8 of $3,500, savage value in year 8 of $1,200, and interest rate of 6%.

2. Determine the following time value of money analyses:

Annual equivalent value of $10,000 now, over 8 years, at an interest rate of 7.5

2. You have a choice of two mortgages with conditions as described. Initial balance $80,000; interest rate 6.9%. One requires and allows only 12 monthly payments per year of $1,700 per month. The other requires and allows only 26 fortnightly payments per year of $784.61 per fortnight. Interest is paid on the current balance at all times. Saturday
a. When will each of the two mortgages be paid off?
b. What is the total interest chargeable in each mortgage?

For the table below, determine the set of mutually exclusive alternatives and determine the feasible alternatives. You have $310,000 available for investment. Friday

Project

A

B

C

Initial investment

$110,000

$140,000

$180,000

Annual return, for 8 years

$30,000

$45,000

$65,000

Salvage value, at the end of 8th year

$7,000

$9,000

$12,000

Reference no: EM13105813

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