The ROI tables are based on simple compounding of interest, looking into the present (P), future (F), or into annual (A) equivalents. Can you use them to calculate the mortgage monthly payments used for purchasing a home? Without getting too bogged down in formulas, explain how mortgage monthly rates are calculated and how they are different than the ROI tables provided in this book Show how the monthly payments for a $300,000 home-mortgage fixed-interest loan for 30 years would look like using the mortgage industry tables. You can use online mortgage calculators. Calculate the present value of the $300,000 mortgage monthly payments.
A firm that plans to expand its product line must decide whether to build a small or large facility to produce the new product. If it builds a small facility and demand turns out to be low, the net present value after deducting for building costs will be P400, 000.
March 10, 2022
6:09 pm
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