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Quiz_________________?
Annual Payments (Amortization) -
Answer✅
1. N = Years, I/Y = Interest, PV = Loan Amount, FV = 0
2. Compute Payments
Quiz_________________?
Calculate Amortization Schedule -
Answer✅
1. Calculate Loan Payment
2. Calculate Interest Component (Beginning balance x I/Y)
3. Calculate Principal component (Payment - Interest Component)
4.The following beginning balance is the first period balance - principal component only.
(Interest goes to bank)
Quiz_________________?
Calculating the Growth Rate -
Answer✅
1
, Or use TMV calculator
1. N = Periods, PV = PV, PMT = 0, FV = FV
2. Compute I/Y
Quiz_________________?
Capital Budgeting -
Answer✅
The allocation of funds to relatively long range projects or investments
Quiz_________________?
Capital Structure -
Answer✅
The choice of long-term financial for the investments the company wants to make
Quiz_________________?
Cash Flow Additivity Principle -
Answer✅
Present value of any stream of cash flow equals the sum of the present values of the cash
flows.
Ex: Cash flows of $100 for 4 Years & a $300 payment that occurs in year 3. Calculate the
PV of both and add them together.
(Use the Unequal Cash flow method.)
Quiz_________________?
Chebyshev's Inequality -
2