Calculate the time needed to pay off the loan

Assignment Help Financial Management

Reference no: EM131847960

Suppose that in the loan described, the borrower made a larger payment than required, as indicated. Calculate (a) the time needed to pay off the loan, (b) the total amount, or the new quarterly payments and (c) the amount of interest saved, compared with the original loan and payments.

$140,000; 8% compounded quarterly; 15 quarterly payments; with larger payment of $15,000.

A) (a) 10 quarters (b) $149,649.79 (c) $6859.88

B) (a) 8 quarters (b) $152,326.14 (c) $11,033.55

C) (a) 10 quarters (b) $150,000 (c) $6956.88

D) (a) 11 quarters (b) $165,000 (c) $7014.88

Reference no: EM131847960

Questions Cloud

What was the net asset value of fund at beginning of year : The fund has issued 100 million of its own shares to investors. What was the net asset value of the fund at the beginning of the year?

Cookie-baking ovens-what is each machine eac : You are evaluating two different cookie-baking ovens. If your discount rate is 11 percent, what is each machine's EAC

Ceases to withdraw funds from the account : She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account.

Describe all transactions the treasurer needs to take : How should the extra cash reserve be invested? Explain. Describe all transactions the treasurer needs to take.

Calculate the time needed to pay off the loan : Calculate the time needed to pay off the loan, the total amount, or the new quarterly payments.

Company has cumulative voting : What is the minimum of shares you need to own to ensure that you can elect at least one directory if the company has cumulative voting?

Generally recognized as being semi-strong form efficient : Financial markets are generally recognized as being semi-strong form efficient, which means:

What is dollar amount of total liabilities reported : What is dollar amount of total assets reported for 2016? What is dollar amount of total liabilities reported for 2016?

What is Scranton EVA : Scranton Shipyards has $20 million in total investor-supplied operating capital, and its WACC is 10%. What is Scranton's EVA?

User Account

All Pages