Determine lump sum payoff amount the loan company will make

Assignment Help Financial Management
Reference no: EM131527217

Robert Carrie financed his office furniture dealer from which he brought it. The dealers terms allowed him to defer payments with interest being charged for six months and then to make 36 equal end of the month payments thereafter. The original note was for $12,000 with interest at 12% compounded monthly. After 26 monthly payments Robert found himself in a financial bind and went to a loan company for assistance. The loan company offered to pay his debts in one lump sum, provided that he will pay the company $240 per month for the next 30 months. determine the original monthly made to the furniture store. Determine the lump sum payoff amount the loan company will make. What monthly rate of interest is the loan company charging on this loan. Please show how you got the answers.

Reference no: EM131527217

Questions Cloud

Calculate annual after-tax operating cash flow : Calculate the annual after-tax operating cash flow for Years 1 -5. Calculate the initial outlay of the project.
The role of management in reducing workplace stress : The relationship between the dose of traumatic events and first responder vulnerability to PTSD.
Yield to maturity on these bonds : The bonds make annual payments. If the yield to maturity on these bonds is 4.4%, what is the current bond price?
Explain the presenting issues : Explain the presenting issues. Please remember to write in third person although you are writing about yourself.
Determine lump sum payoff amount the loan company will make : Robert Carrie financed his office furniture dealer from which he brought it. Determine the lump sum payoff amount the loan company will make.
Create a physical data flow diagram of the purchases system : Create a physical data flow diagram of the Purchases system and create a logical data flow diagram of the Cash Disbursements system
Database design and management : You are a data analyst with strong backgrounds in database design and management.
Print a listing of at least two ads for accounting jobs : The increasing complexity of the current business and regulatory environment has created an increased demand for accountants who can analyze business.
What is the net present value of the investment : If the appropriate Cost of Capital is 8.2 %, what is the Net present Value of the investment?

Reviews

Write a Review

Financial Management Questions & Answers

  Lowest average rate of financing costs to capitalize busines

Explain how the following risks may affect these 3 sources of financing in international capital markets. In addition, explain how these risks may influence a company's international weighted average cost of capital (WACC):

  Political pressure is actually eliminated

The Board of Governors are elected for a 14-year non-renewable term. Do you think political pressure is actually eliminated?

  Dividend growth model-what should be price of company stock

Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2017)?

  Calculate the payment

$500 per quarter is deposited at the end of each quarter into a fund earning a nominal rate of 6% convertible quarterly for five years. The moment after the last payment is made, the balance of the fund is used to purchase a perpetuity immediate whic..

  What is the APR of the loan

You have arranged for a loan on your new car that will require the first payment today. The loan is for $43,500, and the monthly payments are $740. Required: If the loan will be paid off over the next 79 months, what is the APR of the loan?

  Calculate the payback period for the machine

The cost of a new machine is $250000 the machine had a 10 years life and no salvage if the cash inflow generated each year as a result of the investment   in this new machine is equal to 25% of the cost of the machine calculate the payback period for..

  What is the approximate future value

What is the approximate future value of $1,000 to be received each year for 15 years assuming an interest rate of 10%? How many years would it take $1,000 to grow to $5,000 assuming an annual interest rate of 15%? At what interest rate would $1,000 g..

  Contemplating replacing current fleet of delivery vehicles

Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans, which you think you can sell for $3,700 apiece and which you could probably use for another 2 years ..

  Find the current stock price

Find the current stock price. Why do you think the stock price increase, when the dividends paid to investors decrease?

  Outstanding mortgage balance at the lower rate

Assume a 25-year, $490,000 mortgage with a rate of 7.2 percent. 9 years into the mortgage, rates have fallen to 6.2 percent. What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate?

  Calculate the base-case cash flow and NPV

We are evaluating a project that costs $1,446,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 88,600 units per year. Calculate the base-case ca..

  Pay off any remaining loan balance at the end of the loan

You need a 25-year, fixed-rate mortgage to buy a new home for $255,000. Your mortgage bank will lend you the money at an APR of 5.5 percent for this 300-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any re..

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