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PV = $1,783.53

=PV(5%,5,50,2000,0)

PV( interest_rate, number_payments, payment, FV, Type )

Q: Calculate the PV of a bond having 5 years to maturity a face value of 2000 annual payment of 50 and a market interest rate of 5 percent?

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32500 is 325 "hundreds" so 7 times that ie 2275 is your annual interest.

The payment will be $3,670.78 per month.

95

Draw a flow chart to calculate simple interest with 10% rate if time is greater than 2 yrs otherwise calculate simple interest with 5%.

14.4%

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32500 is 325 "hundreds" so 7 times that ie 2275 is your annual interest.

The payment will be $3,670.78 per month.

The monthly interest is 100.

95

79.17

5 percent

Multiply the principle by 1/12 of the interest to calculate how much interest you pay for that moth. Ex: 1/12 of 12.9% = 1.075% (same as .01075). 5000 X .01075 = 53.75 interest to pay for that month. Hence, the first 53.75 of your first payment is for interest alone.

25 percent

Draw a flow chart to calculate simple interest with 10% rate if time is greater than 2 yrs otherwise calculate simple interest with 5%.

14.4%

Interest =.15/365*123*10500 = $530.75 (approximate, depends on composite or accumulation terms) Total = $10,500.00 + 530.75 = $11,030.75 (approximate)

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