Annual payment that will fully amortize the loan

Assignment Help Financial Management
Reference no: EM131566227

You are considering borrowing $120,000 for 30 years at a compound annual interest rate of 8 percent. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years. (Payments include both principal and interest.) What is the annual payment that will fully amortize the loan?

Reference no: EM131566227

Questions Cloud

What is the intrinsic value of face value : What is the intrinsic value of a $1,500 face value, zero-coupon bond that matures in 20 years if an investor's required rate of return for the bond is 10%?
Problem-solving negotiation : In problem-solving negotiation, the disputing parties seek _____.
Disadvantage of arbitration : Which of the following is a disadvantage of arbitration?
If two projects are mutually exclusive and acceptable : if you believe the price of a stock is going to go lower you will purchase a call. If two projects are mutually exclusive and acceptable, then
Annual payment that will fully amortize the loan : What is the annual payment that will fully amortize the loan?
Calculate the discounted payback period : The Company is considering a new turkey farm to service its western region stores. Calculate the discounted payback period.
What is the present value at a discount rate : What is the Present Value at a discount rate of 8%?
Differentiates an arbitration proceeding from trial : Which of the following differentiates an arbitration proceeding from a trial?
What will required rate of return on equity : Holland Auto Parts is considering a merger with Workman Car Parts. What will Workman's required rate of return on equity be after it is acquired?

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluate the performance and financial standing of company

Evaluate the performance and financial standing of the company based on the ratios calculated in Question 1. Present the results as either an essay or as an executive report

  What is the least you could pay to acquire a bill

A Treasury bill has a bid yield of 2.13% and an ask yield of 2.09%. The bill matures in 209 days. Assume a face value of $1,000. What is the least you could pay to acquire a bill?

  What will be their real rate of return over 30 years

If the annualized rate of return on insured tax-exempt municipal bonds will be 3% per annum and the inflation rate remains at 2% per annum, then what will be their real rate of return over 30 years?

  Price of three-month european put option with strike price

The price of a non-dividend paying stock is $19 and the price of a three-month European call option on the stock with a strike price of $20 is $1. The risk-free rate is 4% per annum. What is the price of a three-month European put option with a strik..

  His total pension funds have an accumulated value

Graham Bell has just retired after 30 years with the telephone company. His total pension funds have an accumulated value of $400,000, and his life expectancy is 16 more years. His pension fund manager assumes he can earn a 10 percent return on his a..

  What is money supply growth rate

Consider country that has inflation of 10 percent per year. Real output growth is 2 percent. If velocity of money is constant, what is money supply growth rate.

  Encourage a firm to increase the amount of debt

A firm's business risk is determined solely by the financial characteristics of its industry. A firm's financial risk can be minimized by diversification. Other things held constant, which of the following events would be most likely to encourage a f..

  Firm cost of unlevered equity in perfect capital market

Which of the following statements about a firm’s cost of unlevered equity in a perfect capital market is INCORRECT?

  The design flexibility available for a profit sharing plan

The conditions under which an employer may desire to establish a profit sharing plan. Assume that an employer has had a profit sharing plan for several years and the reactions of the employees toward the plan have been unsatisfactory. The design flex..

  Underestimation of the level of assets needed may

Underestimation of the level of assets needed may

  The net benefit of the borrower decision to refinance

What is the net benefit (loss) of the borrower’s decision to refinance today given the following information and that she intends to move in 5 years?

  Use the net present value method

Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). The asset will cost $120,000, and it will produce earnings before depreciation and taxes of $37,000 per year f..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd