What is a loan amortization schedule? How would you use it to determine your loan interest rate - 12839

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1.  What is the difference between present and future values? How would you use present and future value techniques in preparing a financial retirement plan? How would various required rates of return affect the decision? Explain your answer.

 

 

2. What is a loan amortization schedule? How would you use it to determine your loan interest rate? What factors would affect your choice between two loans?

 

Solution Description

1.  What is the difference between present and future values? How would you use present and future value techniques in preparing a financial retirement plan? How would various required rates of return affect the decision? Explain your answer.

 

The concept of present and future value states that a dollar today is worth more than a dollar in future. This concept arises due to the time value of money and inflation. The concept can b