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Today
1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013
(01/01/2008)
Balance Owed -$10,000.00 -$10,000.00 -$8,000.00 -$5,900.00 -$1,379.00
"Interest" $0.00 -$500.00 -$400.00 -$295.00 -$68.99
"NET NEW
$0.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00
REVENUE"
Balance -$10,000.00 -$8,000.00 -$5,900.00 -$1,379.75 $1,051.26
What if the interest rate is 10% ?….
T oday
1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013
(01/01/2008)
NPV =
Today
01/01/08 01/01/09 01/01/10 01/01/11 01/01/12
(01/01/2007)