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The valueof annual interest payments (without paying down the debt) = (Principle (1 +
APR/4)^n*4) - Principle = ($100000 (1 + 0.08/4)^1*4) - 100000 = ($100000 * 1.08243216) -
100000 = 108243.22 - 100000 = $8243.22
Solution
The valueof annual interest payments (without paying down the debt) = (Principle (1 +
APR/4)^n*4) - Principle = ($100000 (1 + 0.08/4)^1*4) - 100000 = ($100000 * 1.08243216) -
100000 = 108243.22 - 100000 = $8243.22

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The valueof annual interest payments (without paying down the debt) .pdf

  • 1. The valueof annual interest payments (without paying down the debt) = (Principle (1 + APR/4)^n*4) - Principle = ($100000 (1 + 0.08/4)^1*4) - 100000 = ($100000 * 1.08243216) - 100000 = 108243.22 - 100000 = $8243.22 Solution The valueof annual interest payments (without paying down the debt) = (Principle (1 + APR/4)^n*4) - Principle = ($100000 (1 + 0.08/4)^1*4) - 100000 = ($100000 * 1.08243216) - 100000 = 108243.22 - 100000 = $8243.22