Both forms of payment are?equivalent

Assignment Help Financial Management

Reference no: EM131868616

A bank is negotiating a loan. The loan can either be paid off as a lump sum of $13 0,000 at the end of 4 years, or as equal annual payments at the end of each of the next 4 years. If the interest rate on the loan is 9.3?% regardless of the payment?method, what annual payments should be made so that both forms of payment are?equivalent? (Round your answer to the nearest cent)

Reference no: EM131868616

Questions Cloud

What is the opportunity cost of going to college term : What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

What is the yearly interest rate being offered by the dealer : What is the yearly interest rate being offered by the dealer (to the customer) in %?

Describe how often you need to re-certify : Give a description of the certification or degree program. List the cost of the certification or degree (semester hour).

Describe the concepts of family and culture : Using your own words, describe the concepts of family and culture. How do the descriptions differ from strict definitions of the terms?

Both forms of payment are?equivalent : what annual payments should be made so that both forms of payment are?equivalent?

Develop a brand strategy for a hybrid car : Develop a brand strategy for a hybrid car. To come up with a strategy, answer the following questions.

Monetarist and structualist interpretations of lation : What is the difference between monetarist and structualist interpretations of Lation American inflations? Please provide authentic solution of this problem.

Develop a clear picture of the environmental issues : Based on your discussions with Michelle, you have developed a clear picture of the environmental issues that will affect the initial release of the new product.

Determining the production function : Suppose a hypothetical economy can be well represented by a Solow model. The production function is estimated to be Y=(K^0.5)(L^0.5)

User Account

All Pages