How do I calculate the net present value.

Problem:
Lump Sum Payment of $500,000
Needs to be grossed up 35% for taxes
Paid out over 5 years @ annual interest rate of 4%

What would the monthly payout amount be over 60 months?

Check with the homework help section.

If you have Excel, search for "amortization schedule" in Microsoft Office online help - you will find a handy spreadsheet that you can download and figure this out.
Alternatively, if you want to build your own spreadsheet - the monthly payment can be calculated from:


Monthly\ Payment = \frac {Principal} {\displaystyle \sum_{n=1} ^{60} \frac 1 {(1+\frac i {12} ) ^n} }