Assuming complete replacement of capital

Assignment Help Financial Management

Reference no: EM13924510

Admiral Trust Company makes an amortized loan of $47,000, to be repaid by annual end-of-year payments of $4,675 for eighteen years. In order to replenish its capital, the company will make level annual payments into a sinking fund account earning 5% interest.

If the sinking fund account is held by a third party, what is Admiral Trust Company's yield rate assuming complete replacement of capital?

Reference no: EM13924510

Questions Cloud

Annual effective interest rate : Gerry pays $ W to buy a ten-year annuity with end-of-year payments of $ 1,400. This purchase price allows her to replace her capital by means of a savings account that has an annual effective interest rate of 3% and also to earn an overall annual yie..

What does the research show about implicit attitudes on race : After reading the story and your scholarly readings for the week, what advice would you give to any employer who is concerned about prejudice and discrimination in the workplace? What does the research show about implicit attitudes on race

Determine the annual after tax interest cost : Determine the annual after tax interest cost for each company as a percentage of the face value of thebonds

What are the details in the article : Perform the step in Section B.2 of the partial audit program in the Southwest Appliances spreadsheet file. Initial and date the step on the program when you complete it by entering your initials and the date into the appropriate cells in the Prog..

Assuming complete replacement of capital : Admiral Trust Company makes an amortized loan of $47,000, to be repaid by annual end-of-year payments of $4,675 for eighteen years. In order to replenish its capital, the company will make level annual payments into a sinking fund account earning 5% ..

Devise staffing strategy for all of the organisations : Devise staffing strategy for all of the following organisations. 1. A church- based kichen soup staffed with volunteers. 2.a professional based baseball team.3 A small internet start up. 4.a publisher of a large daily newspaper in a major city, 5. A ..

What are basic assumptions behind markowitz portfolio theory : What are the basic assumptions behind the Markowitz portfolio theory? What do we mean by risk, and what are some measures of risk used in investments?

Best technique for emphasizing to stockholders : 1. Which is the BEST technique for emphasizing to stockholders the reasons for revenue increases? 2. As vice president of sales, you would like to send company personnel a good-news message about the company's first quarter sales results. Which of..

Projected net cash : hat should EBIT be? Projected Net Cash

User Account

All Pages