1. Payments of $440,000 semi annual for 20 years or 8million dollars
now, what is the rate of interest used to arrive at 8mm?

assuming 8m is the present value, use
=(1+RATE(20*2,440000,-8000000))^2-1
gives the result: 9.38%


2. Payment of 8mm now or using a rate of 7% what should the semi
annual payments be for 20 years to equal the value of $8million?

=PMT(7%/2,20*2,-8000000)
result: 374618

Mangesh


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