Present value equation and future value equation

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Reference no: EM132002997

1. Bob pays $800 per month on his 48-mohth amortizing loan. If the monthly interest rate on the loan is 0.5%,then what is the interest portion of Julie's 14th monthly payment ?(please show all calculations to support your answer)

2. Explain the three basic conditions that underlie an annuity and how you would solve time value problems that do not satisfy these conditions.

3. Describe the relationship between the Present Value Equation and The Future Value equation and explain why the present value of a future sum is always less than the sum’ future value.

Reference no: EM132002997

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