Finance Questions

Archive for the ‘Finance Calculations’ Category

Question: Finance Help please !!!!!!?

Bond Yields

Answer: Ans is 5.832%
If you have excel use this formula
=RATE(9,70, -1080,1000)
where 9 is the year left
70 is the 7% annuity of $1000
-1080 is the amount paid
1000 is the future value which is the value of the bond at expiry

Using financial calculator would be a bit hard because the manual formula is and you need to find the r (rate)
70(1 + r)^-1 + 70(1 + r)^-2 + 70(1 + r)^-3 + 70(1 + r)^-4 + 70(1 + r)^-5 + 70(1 + r)^-6 + 70(1 + r)^-7 + 70(1 + r)^-8 + 70(1 + r)^-9 + 1000(1 + r)^-9 = 1080

For a example please see, they have the popup calculator for that too

http://www.moneychimp.com/articles/finworks/fmbondytm.htm

Financial calculator part 1 of 2

Question: Car Buying Question? Tax & Title Fees...

I'm looking into buying a car, my first car purchase, it's a 2006 VW Jetta, and I plan to get my financing through Capitol One or my bank, so how does that all work? I mean I know how much I can afford using the auto loan calculator but how do I know if I can afford the loan for the cost of the car and the tax and title?

Answer: Just put your numbers into a loan calculator and see what monthly payment results. You'll have to know or estimate the interest rate on the loan, and the number of months. Tax will be charged at the same rate as you pay for other goods, and title/registration fees will only be several dollars to maybe a couple hundred dollars, depending on the state you live in. Here's a calculator that would do the job for you:

http://www.autoloancalculatoronline.com

Good luck.

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