Consider four-year amortizing loan

Assignment Help Financial Management
Reference no: EM131931168

Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment $ b. Prepare an amortization schedule. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) Time Loan Balance, $ Year-End Interest Due on Loan Balance, $ Total Year-End Payment, $ Amortization of Loan, $ 1 2 3 4 5

Reference no: EM131931168

Questions Cloud

Expansionary or contractionary monetary or fiscal policy : To reach the full employment level in the goods market, should expansionary or contractionary monetary or fiscal policy be implemented?
What must be the discount rate : If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 40% of earnings in the firm, what must be the discount rate?
What is the present value of payments : what payments will you receive? What is the present value of those payments?
What is the net present value of this project : If the tax rate is 28% and the required rate of return is 12%, what is the net present value (NPV) of this project?
Consider four-year amortizing loan : Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments.
Describe the importance of the iom future of nursing report : Describe the importance of the IOM Future of Nursing report related to nursing practice, nursing education and nursing workforce development.
What is the estimated annual operating cash flow : If straight-line depreciation is used to calculate annual depreciation, what is the estimated annual operating cash flow from this project each year?
Different kinds of money : The Federal Reserve has different "kinds" of money that they keep track of. So what kind of money is in what the Fed calls M1? M0?
What is the value of the shareholders equity account : Building a Balance Sheet Rose, Inc., has current assets of $7,300, net fixed assets of $26,200, current liabilities of $5,700, and long-term debt of $12,900.

Reviews

Write a Review

Financial Management Questions & Answers

  Exactly equal to the present value of annual installments

Francis Peabody just won the $89,000,000 California State Lottery. The lottery offers the winner a choice of receiving the winnings in a lump sum or in 26 equal annual installments to be made at the beginning of each year. What is the amount of the l..

  Calculate the expected rate of return and standard deviation

Escapists Film Corp. sells home videos. in a boom economy its rates of return is negative 28%, in a normal economy it's rate of return is 8% and in a recession it's rate of return is 48%. all three possible states of the economy are equally likely. c..

  Discuss how you have planned for your retirement so far

Discuss how you have planned for your retirement so far, whether you are on track to reaching your goals, and what changes you need to make. Are there any specific ideas that will help you reach your goals and if so, discuss.

  The major contribution of the miller model

The major contribution of the Miller model is that it demonstrates that

  How can the real rate of interest be negative

How can the real rate of interest be negative?- Why were lenders willing to accept a negative real rate of interest during the 1970s?

  Great sales make great products

Comment on the following statements using two separate examples in each response : 1."Great products make great sales?;" and, 2."Great sales make great products?"

  What should be the price per share for this company

The discount rate is 8%, the firm has debt totaling $43 million, and 10 million shares outstanding. What should be the price per share for this company?

  What are two other ways swiss air might hedge

On January 2d, 2017, Boeing expects to send 5 787s from its plant in Seattle, WA to Swiss Air, which it will sell on 270-day terms at $125 million each. Thus Boeing will receive payment from Swiss Air on September 27th, 2017. What are two other ways ..

  Defined benefit asset

Which of the following results in an over-funded defined benefit pension plan? Which of the following is a Defined Benefit asset?

  Calculate the cost of common equity financing

Calculate the cost of common equity financing using Gordon Model Round the answers to two decimal places in percentage form.

  What is the least amount you will sell your claim

Play-2-Win is the latest lottery game in your country, and you happen to be latest winner of $10.5 million. What is the least amount you will sell your claim

  Comparing cash flow streams

You've just joined the investment banking firm of Dewey, If the interest rate is 7 percent compounded monthly, which do you prefer?

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