Author Question: An ordinary annuity is an annuity having no fixed number of payments but depending on an uncertain ... (Read 183 times)

imowrer · **on:** Jun 24, 2018

An ordinary annuity is an annuity having no fixed number of payments but depending on an uncertain event, such as life insurance payments ceasing at the death of the insured.
Indicate whether the statement is true or false

Question 2

Jacob is using Excel to track the installment loan he used to buy a new boat. He has entered the purchase price in Cell B5, the interest rate in Cell B6, the down payment percent in Cell B7, and the years for the loan in Cell B8. Formulas will be entered to calculate amount financed in Cell B9, finance charge in Cell B10, and monthly payment in Cell B11. Jacob needs help to write the formula to determine the monthly payment. How would you explain to Jacob what he needs to calculate so that explanation can turn into an Excel formula? What is the formula?

diesoon · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

FALSE

Answer to Question 2

Divide the amount to be repaid (amount financed plus finance charge) by the number of monthly payments (number of years times 12 months); =(B9+B10)/(B812)