Internet Application Problems


1		Financial "calculator" worksheets are commonly available at the web sites of financial institutions and financial services providers. Most are single-purpose calculators designed to do one calculation on a set of input data. The Capital Builder Calculator in the Toolkit at the Altamira Investment Services Inc. Web site is more versatile than most Web-based financial calculators. It will allow you to calculate any variable for an ordinary simple annuity if you first enter values for the other four variables. Still, it is less versatile than your own financial calculator because it cannot handle annuities due (Chapter 13 of your textbook) and it does not use the standard cash flow sign convention.



2		A "Bug" in a Calculator: Web-based calculators do not always give the correct answer. Use the Loan Calculator to calculate the monthly payment to repay a $10,000 loan at 12% compounded monthly over a five-year term. Also calculate the payment using your financial calculator or formula (10-2). Compare the answers. Try other cases to see if any sort of pattern emerges for the direction and amount of the error. (There is always a possibility that the Loan Calculator may be fixed by the time you try this.)

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