Determine the net interest in year 12

Assignment Help Financial Management
Reference no: EM131970865

A loan of 7000 is being repaid with interest at the end of each year at an annual effective interest rate of 14%.

The principal is being accumulated with 16 annual deposits in a sinking fund that pays 11% effective. Determine the net interest in year 12.

Reference no: EM131970865

Questions Cloud

Computing the present value of a debt security : Compute the present value of a five-year bond with a face value of $2,000, a 10% annual coupon payment, and an 8% effective rate.
Estimating stock value using dividend discount model : Estimate Kellogg's expected growth rate based on its recent stock price using the dividend discount model with increasing perpetuity.
What is the value of the account in five years : Additionally, he invests another $50 at the end of each month into the account for the next five years. What is the value of the account in five years?
How can liquidity risk can lead to insolvency risk : Explain the dilemma between liquidity, solvency and profitability. How can liquidity risk can lead to insolvency risk?
Determine the net interest in year 12 : The principal is being accumulated with 16 annual deposits in a sinking fund that pays 11% effective. Determine the net interest in year 12.
How would inflating the percentage completion of ending work : How would inflating the percentage completion of ending Work-in-Process Inventory help Pines and Lopez get their bonus?
What interest rate is the bank advertising : A local bank is running the following advertisement in the newspaper; "For just $2,000 we will pay you $180 forever!"
What is the value of streiber : Streiber Publishing is an all-equity firm that generates perpetual EBIT of $2.5M per year. Their after tax all equity discount rate is 20%.
What is the dollar amount of each payment jan receives : How much interest was included in the first payment? How much repayment of principal was included? How do these values change for the second payment?

Reviews

Write a Review

Financial Management Questions & Answers

  Investment goal and style of fund brief description of fund

The purpose of this project is to give you real life experience on investment. In this project, you would first act as fund managers to construct, manage and advertise a fund of your own. statement of the investment goal and style of the fund brief d..

  Compute the profitability index for project

Compute the Profitability index for Project Z.

  Cellular service provider gives customers free cell phone

A cellular service provider gives customers a “free” cell phone if they sign a two-year service contract. You are a state tax auditor.

  Lower weighted average cost of capital

it might be expected that firms with high debt ratios would have a lower weighted average cost of capital.

  Inheritance or debt and what is the amount

Daisy Flowers has just retired with $650,000 in her retirement account. She would like $5,000 each month to pay her bills (and have some fun). She expects to receive a $1,500 check each month from Social Security, and will obtain the rest from her re..

  The present value of the growing perpetuity

What if the appropriate discount rate is 66?%? If the appropriate discount rate is 8?%, the present value of the growing perpetuity is $

  What was the amount of each withdrawal

A philanthropist leaves an inheritance to 3 charities as a perpetuity-due. what was the amount of each withdrawal?

  The project will produce the after tax cash inflows

Marathon Technologies, Inc is using the modified internal rate of return (MIRR) when evaluating projects. The company is able to reinvest cash flows received from the project at an annual rate of 8.89%. The initial outlay for this project is 472,000...

  Does this suggest an investment strategy

Calculating Future Values. You have just made your first $5,000 contribution to your individual retirement account. Assuming you earn a 10.1 percent rate of return and make no additional contributions, what will your account be worth when you retire ..

  What is your total return from this investment

You purchased 3,000 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.10 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 1 percent. what is your to..

  What is the capital recovery for an asset

What is the capital recovery for an asset that cost 620,000 and the salvage value of -120,000 after 15 periods of use applying an interest rate of 11.5%?

  Not exercise the option and what would be your gain or loss

You have purchased a call option contract on Smith & Smith common stock. The option contract is for 100 shares. The option has an exercise price of $43.00 and S & S’s stock currently trades at $40.00. The option premium is quoted at $2.00. If the sto..

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