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Time Value of Money

PV = $434000.00, N = 360, PMT = $3991.81, I/Y = 10.57%. If this 30 yr. loan is paid off in 10 yrs. with a balloon payment of $398,025.92. What would this currently 10 57% loan turn out to be?

Or what would this $434,000.00 investment return be, with a return of 120 payments of $3991.81, which would return $479,017.20 (should these payments be put in to a sinking fund ? If so at what interest.) Plus a balloon payment of $398,025.92.

Solution Preview

Payment M Monthly
No of years= 10
No of Periods= 120
Discount rate annually= 10.57% annual
Discount rate per period= 0.88%
n= 120
r= 0.88%

PVIF 120 periods, .88% rate= 0.349108697
PVIFA 120 periods, .88% rate= 73.89494454

Equalized ...

Solution Summary

Calculates the value of a loan.

$2.19