Construct an amortization schedule

Assignment Help HR Management

Reference no: EM13743722

Question-1:

You want to buy an automobile that costs $30,000. You have $5,000 for a down payment and have to borrow the rest of the amount. A commercial bank has agreed to extend you a 3 year loan for an annual interest rate of 7%.

a. How large would each annual payment be?

b. Construct an amortization schedule.

Question-2:

You are considering a 15 year, $1,000 par value bond. Its coupon rate is 8%, ad interest is paid semi-annually. If you require an "effective" annual interest rate (not a nominal rate) of 9.16%, how much should you be willing to pay for the bond?

Reference no: EM13743722

Questions Cloud

Majority of revenue came from exporting products : Imagine that you own a business in which the majority of revenue came from exporting products to other countries. Determine if you would support a fixed or flexible exchange rate system. Provide support for your response.

Determine the steps that the federal reserve should take : Determine the steps that the Federal Reserve should take to help stabilize our economy. Next, explain how each of the following variables will be affected by proposed steps

Concepts of a break-even point and cvp analysis : Due to her enthusiasm, you have decided to introduce her to some additional tools she may be able to use in her organization. Discuss the concepts of a break-even (BE) point and CVP analysis and why they are important in business. Give appropriate..

Preparing a contribution income statement : Describe the concept of sensitivity analysis and explain the value of applying it during any budgeting process.

Construct an amortization schedule : You want to buy an automobile that costs $30,000. You have $5,000 for a down payment and have to borrow the rest of the amount. A commercial bank has agreed to extend you a 3 year loan for an annual interest rate of 7%.

What factors affect the salinity of an estuary : What factors affect the salinity of an estuary

Statement showing the incremental cash flows : Using the information in the assignment description: Prepare a statement showing the incremental cash flows for this project over an 8-year period.

Biology and technology in the real world : Written Assignment: Biology and Technology in the Real World, Background: This assignment will give you the opportunity to participate in ongoing scientific research

The capital cost and patient experience : Identify an organization that currently pursuing a Triple Aim and what are they doing, the capital cost, and patient experience, outcome, patient satisfaction,and how they are contributing to the health and community around them.

User Account

All Pages