Microsoft Office Tutorials and References
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Table 9.1 Scenarios for Yacht purchase
Yacht
A
B
C
D
E
F
Interest (%)
7
6.75
6.5
6.25
6
5.75
No. of Periods 72
72
60
60
48
48
Principal
160,000 150,000 140,000 180,000 330,000 360,000
start_period, end_period, type). It calculates the cumulative interest paid over a
specified number of time periods and contains the same arguments as the PMT cell
formula. There are also two additional inputs, start_period and end_period; they
identify the period over which to accumulate interest payments.
For Padcha’s mortgage problem, the periods of interest are the first year (1–12)
and the second year (13–24). This suggests the first payment will begin in January
and the last will be in December. Since income taxes are paid annually, it makes
sense to accumulate over a yearly time horizon. Of course, if payments do not begin
in January, we must select the end_period to reflect the true number of payments
Exhibit 9.14 Scenarios example for mortgage problem
 
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