APR 7.

20%
rate 0.60% APR which is the prime rate (7.20%) is taken from the Bank of C
nper 84 database(primary key) which is the latest prime rate at 2024-01
pmt $ (350.00)
fv $ 50,000.00 I always dreamt for Hyundai Sonata worth $50,000.00.
type 0
pv $ (7,210.48)

My dream car is Hyundai Sonata worth $50,000.00. I can only afford to pay $350.00 pe
month at the end of every month for 7 years and interest rate for every period is 0.60%
with all this information, I am calculating how much amount I have to pay today i.e. pre
value. By applying the function for present value(pv), I found that I have to pay $7210.4
today i.e. in the present.
s taken from the Bank of Canada
test prime rate at 2024-01-24

worth $50,000.00.

y afford to pay $350.00 per

e for every period is 0.60%. So
I have to pay today i.e. present
that I have to pay $7210.48
APR 9.25%
rate 0.77%
nper 84
pmt $ (350.00)
fv $ 50,000.00
type 0
pv $ (4,649.38)

Reasons why the money I have to pay today decreases considerably:

1. Compound Interest
APR 7.20%
rate 7.20%
nper 7
pv $ -
fv $ 50,000.00
type 0
pmt $ (5,742.45)

Here, I calculated the annually payments I would

need to make in order to arrive at the value of my
dream car in 7 years which is $5,742.45
APR 7.20%
rate 0.60%
pmt $ (478.54)
pv $ -
fv $ 50,000.00
type 0
nper 81.36

It takes me less time to save for my car using monthly payments because of
compound interest as savings will accelerate when interest is compounded
frequently on monthly basis instead of compounding on annual basis.
 ts because of
compounded
al basis.
I am a fitness freak and always wanted to spread awareness about
fitness among youngsters. To fulfill my dream, I took a loan to open a
gym with 7.20% APR with a 10 year ammortization period, but I can only
afford to make half-yearly payments of $4200 at the beginning of every
6 months. Below here, I calculated the principal loaned by me.

APR 7.20%
rate 3.60%
nper 20.00
pmt $ (4,200.00)
fv $ -
type 1
pv $ 61,285.17