Calculate the portion of the monthly payment

Assignment Help Finance Basics
Reference no: EM131488080

Question: 1. (Solving for n with nonannual periods) About how many years would it take for your investment to grow fourfold if it were invested at an APR of 16 percent compounded semiannually?

2. (Spreadsheet problem) To buy a new house you take out a 25-year mortgage for $300,000. What will your monthly payments be if the interest rate on your mortgage is an APR of 8 percent compounded monthly? Use a spreadsheet to calculate your answer. Now, calculate the portion of the 48th monthly payment that goes toward interest and the portion that goes toward principal.

Reference no: EM131488080

Questions Cloud

Calculate the future sum : Recalculate part (a) assuming the interest rates is (1) an APR of 6 percent compounded semiannually and (2) an APR of 6 percent compounded bimonthly.
Transaction to import raw materials from foreign country : On December 1, 2014, SMC entered into a transaction to import raw materials from a foreign country.
What material weaknesses are specific to trinity : Assess, through reflection on the case study as well as the comparable industries identified in the overview, what material weaknesses are specific to Trinity.
Which alternative is more attractive : (Compound interest with nonannual periods) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance.
Calculate the portion of the monthly payment : (Solving for n with nonannual periods) About how many years would it take for your investment to grow fourfold if it were invested at an APR of 16 percent.
Explain the importance of reviewing for subsequent events : Explain the importance of reviewing for subsequent events. Describe the requirements for reviewing for contingent liabilities and subsequent events.
Estimate of the total cost to the company for equity issue : What is the best estimate of the total cost to the company for the equity issue?
Measure of national economic wellbeing : In spite of the limitations (shortcomings), why is the GDP used as a measure of national income as well as a measure of national economic wellbeing?
What apr are you paying on this bowflex loan : (Nonannual compounding) George is considering buying a new house and has to borrow $50,000 to pay for it. He plans to take a mortgage loan from a bank.

Reviews

Write a Review

Finance Basics Questions & Answers

  What would be the total contributions and value of account

An employee contributes $200 a year (at the end of the year) to her pension plan. What would be the total contributions and value of the account after five years? Assume that the plan earns 15% per year over the period.

  Mary currently has tax-exempt bonds that pay 7 she is in

mary currently has tax-exempt bonds that pay 7. she is in the 40 tax bracket. she is considering replacing her

  Different approaches to the study of leadership

Distinguish between different approaches to the study of leadership and discuss critically the circumstances under which each approach can be implemented.

  Calculate the npv

Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system.  Calculate the NPV.

  What is its total assets turnover

What is its total assets turnover? Round your answer to two decimal places What is its equity multiplier? Round your answer to two decimal places. What is its equity multiplier? Round your answer to two decimal places.

  Does michael porters concept of corporate shared value end

does michael porters concept of corporate shared value end the debate on shareholder primacy versus stakeholder primacy

  How the transaction affected the basic accounting equation

Recently, Johnson & Johnson purchased the outstanding common stock of several businesses for $2.8 billion in cash. The purchase price exceeded the estimated fair market value of the acquired assets by $1.8 billion, and Johnson & Johnson assumed li..

  Amount should be used as the initial cash flow

The company now wants to build a new facility on that site. The building cost is estimated at $1.03 million. What amount should be used as the initial cash flow for this project

  Analysts expect the company''s dividend to grow

A stock just paid a dividend of D0 = $1.1. The required rate of return is rs = 9.2%, and the constant growth rate is g = 6%. What is the current stock price?

  The physical damage to the neighbor pickup

Michael was driving a neighbor's pickup truck to get a load of firewood. A child darted out between two parked cars and ran into the street in front of the truck. In an unsuccessful attempt to avoid hitting the child, Michael lost control of the v..

  What is the cost of equity from retained earnings

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $42.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

  An investment project has annual cash inflows of 5000 5500

an investment project has annual cash inflows of 5000 5500 6000 amp 7000. and a discount rate of 14 . what is the

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