orla 7.2 S-P+I armla 7.34S-P(I +) restated as FV-PV( 1 + ir Fermula S2 Farmals 10.1--1 Formula 11. FV er year 1+i-1 Formula 12.1P-1 Finding the fatare vaie et an ordisary general annuity using the eflective rate of inter est per paryment peried where p ( +i-1 PVr = PMT[I-(1+p)""I Finding the present value of an ordinary general annuity uning the eflective rate ot interest per paymeet period Farmata 12.3 Formula 124 SIZE OF THE NTH PAYMENT Finding the sire of the ath paymest of a Formuta 12.5 SUM OF THE PERIODIC CONSTANT-GROWTH Finding the sam of the periadic payments ofa constant-growth annuity PAYMENTS Finding the tuture value at an ordinary simple canstant-growth annuity Formula 12.6 FV=PMT PV=PM FV.. n (PMT)(1 + i) Finding the present value of a series ef payments forming aconstant- growth anauity Finding the tuture value of an ordinary simple constant-owth y when the constant-prowth rate and the sumber of conversion perods Formula 12.7 Formula 12.8 are the same Finding the present value of an ordinary simple constant-growth annuity when the constant-growth rate and the number of conversion periods are the same Formula 12.9 PV=n(PMT)(1+)- Formula 13.1FV, (due) PMT (I+i) Finding the future value of a simple annuity due Copyright O 2012 Pearson Canada Inc. +P)-1 where p- n- a+p) where p _ (1+0'-1 PMT orla 13.5 PV Formula 13.5 PV PMT Finding the pre perpetuity where p( PMT ormulte 13.7PV(due) PMT PMT Formula 11.8 PV(due)-PMT + where p-( Farmula 15.1 PP FVO+"+ 1 _ (1 + p)--1 Formala 15.2PP Fv(I + p)+ PMT Basic tenka tar Ethe purchase price et b- he the interest payment ntera and the yeld rate where PN (1 + -1 Formula 153 PREMIUM OR DSCOUNT .. (b X FAaVALUE-İ × REDEMPTON PRICE) Direct formala for finding the premiun or dscount of a bond a segative anwer indicates a discount AVERAGE INCOME PER INTEREST PAYMENT INTERVAL AVERAGE BOOK VALUE Formula 15.4 APPROXİMATE VALUE OF İ = where AVERAGE BOOK VALUE-, (QUOTED PRICE + REDEMPTİON and AVERAGE INCOME a) -PREMIUM TOTAL INTEREST PAYMENTS 揿INTEREST INTERVAL NUMBER OF INTEREST PAYMENT INTERVALS Basic formula for finding the yield rate using the method of averages Formula 16.1 Formula for the difference between the present value of cash nflows and the present value of cash outlows, known as the net present value NET PRESENT VALUE = PRESENT VALUE PRESENT VALUE OF OUTLAYS (NPV) OF INFLOwS PROFITABİLITY INDEX-PRESENTwuloro nus-PV4-value of cash-bythme et val. Formal, 162 PROFITABILITY INDEX PRESENT VALUE OF OUTLAYS PVot present value of cash inflows bty the present value cash outflows, known as the profitability index Copyright O 2012 Pearson Canada Inc 2. (3 marks)A $92000 mortgage with a 25 year term is repaid by making payments at the end of each month. If interest is 5.8% compounded semi-annually, how much are payments? orla 7.2 S-P+I armla 7.34S-P(I +) restated as FV-PV( 1 + ir Fermula S2 Farmals 10.1--1 Formula 11. FV er year 1+i-1 Formula 12.1P-1 Finding the fatare vaie et an ordisary general annuity using the eflective rate of inter est per paryment peried where p ( +i-1 PVr = PMT[I-(1+p)""I Finding the present value of an ordinary general annuity uning the eflective rate ot interest per paymeet period Farmata 12.3 Formula 124 SIZE OF THE NTH PAYMENT Finding the sire of the ath paymest of a Formuta 12.5 SUM OF THE PERIODIC CONSTANT-GROWTH Finding the sam of the periadic payments ofa constant-growth annuity PAYMENTS Finding the tuture value at an ordinary simple canstant-growth annuity Formula 12.6 FV=PMT PV=PM FV.. n (PMT)(1 + i) Finding the present value of a series ef payments forming aconstant- growth anauity Finding the tuture value of an ordinary simple constant-owth y when the constant-prowth rate and the sumber of conversion perods Formula 12.7 Formula 12.8 are the same Finding the present value of an ordinary simple constant-growth annuity when the constant-growth rate and the number of conversion periods are the same Formula 12.9 PV=n(PMT)(1+)- Formula 13.1FV, (due) PMT (I+i) Finding the future value of a simple annuity due Copyright O 2012 Pearson Canada Inc. +P)-1 where p- n- a+p) where p _ (1+0'-1 PMT orla 13.5 PV Formula 13.5 PV PMT Finding the pre perpetuity where p( PMT ormulte 13.7PV(due) PMT PMT Formula 11.8 PV(due)-PMT + where p-( Farmula 15.1 PP FVO+"+ 1 _ (1 + p)--1 Formala 15.2PP Fv(I + p)+ PMT Basic tenka tar Ethe purchase price et b- he the interest payment ntera and the yeld rate where PN (1 + -1 Formula 153 PREMIUM OR DSCOUNT .. (b X FAaVALUE-İ × REDEMPTON PRICE) Direct formala for finding the premiun or dscount of a bond a segative anwer indicates a discount AVERAGE INCOME PER INTEREST PAYMENT INTERVAL AVERAGE BOOK VALUE Formula 15.4 APPROXİMATE VALUE OF İ = where AVERAGE BOOK VALUE-, (QUOTED PRICE + REDEMPTİON and AVERAGE INCOME a) -PREMIUM TOTAL INTEREST PAYMENTS 揿INTEREST INTERVAL NUMBER OF INTEREST PAYMENT INTERVALS Basic formula for finding the yield rate using the method of averages Formula 16.1 Formula for the difference between the present value of cash nflows and the present value of cash outlows, known as the net present value NET PRESENT VALUE = PRESENT VALUE PRESENT VALUE OF OUTLAYS (NPV) OF INFLOwS PROFITABİLITY INDEX-PRESENTwuloro nus-PV4-value of cash-bythme et val. Formal, 162 PROFITABILITY INDEX PRESENT VALUE OF OUTLAYS PVot present value of cash inflows bty the present value cash outflows, known as the profitability index Copyright O 2012 Pearson Canada Inc 2. (3 marks)A $92000 mortgage with a 25 year term is repaid by making payments at the end of each month. If interest is 5.8% compounded semi-annually, how much are payments?