Question
In: Finance
You wish to know the current price of a security. The security makes payments of $44,744.72...
| You wish to know the current price of a security. The security makes payments of $44,744.72 once every month for a period of 41 years. | ||||||||
| If the approriate interest rate is 7.34%, then how much should this security cost? | ||||||||
How do I solve this, step by step on how you get the interest rates and years and then what is the formula that would be used in excel
Solutions
Expert Solution
then how much should this security cost using excel
=PV(rate,nper,pmt,fv)
=PV(7.34%/12,41*12,-44744.72,0)
=6951095.14
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