Find the amount of payments

Assignment Help Finance Basics
Reference no: EM133111792

Assume you were just offered a $500,000 mortgage at a quoted rate of 2.5% and the mortgage calls for equal monthly payments based on a 20-year amortization period. If you were asked to find the amount of your payments using the annuity present value formula, what discount rate would you use in the formula?

Reference no: EM133111792

Questions Cloud

What is the current share price of the company : Stock Valuation: You are asked to valuate two stocks in different stage of their life cycle.
What is the bank car : Assuming the following balance sheet, what is the Bank's CAR?
What is the effective cost of debt : The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it ex
Company after-tax cost of debt : The capital structure weights for a company are 85% equity and 15% debt. The company's after-tax cost of debt is 8% and its cost of equity is 16%.
Find the amount of payments : Assume you were just offered a $500,000 mortgage at a quoted rate of 2.5% and the mortgage calls for equal monthly payments based on a 20-year amortization peri
Determine the total number of charges : Determine the total number of charges and the sum of the charges for the various doctors - handout are designed to provide help to those members of the class
Generate cash inflows in the amount : A company is considering a 8-year project. The project is expected to generate cash inflows in the amount $375,000 at the end of each of the 8 years. At the beg
What is company wacc : The capital structure weights for a company are 85% equity and 15% debt. The company's after-tax cost of debt is 7% and its cost of equity is 14%. What is this
Quote on lending arrangement : If a lender charges an interest rate of 1.6% per quarter, what rate must they quote on this lending arrangement?

Reviews

Write a Review

Finance Basics Questions & Answers

  How does the civil rights act of 1991 differ

How does the Civil Rights Act of 1991 differ from the Civil Rights Act of 1964?

  Projected dividend for the coming year

Alliances dividends are expected to grow at 25% per year for the next three years and then grow at a rate of 5% forever. If the required rate of return is 10% and the share currently sells for $30. What is the projected dividend for the coming yea..

  Determine expected payment

Determine expected payment

  Shares of conglomco stock

Conglomco stock ended last year at $77.24. If you owned 200 shares of Conglomco stock, what were your dollar return and percent return last year?

  Assay expenses at the time of sale are expected to total

over the past 10 years your 15000 in gold coins has increased in value by 200 percent. you plan to sell these coins

  Explain fundamental changes in sales management processes

Describe and explain fundamental changes in Sales Management processes and why these changes have occurred.

  True proportion of vehicles not covered by insurance

Additional Comments: According to statistics reported on CNBC, a surprising number of motor vehicles are not covered by insurance. Simple results, consistent with the CNBC report, showed 47 of 211 vehicles were not covered by insurance. Question: ..

  Integrated program management report

Given this cumulative data, taken from the Integrated Program Management Report, what is the estimate at completion (EAC), using the cost performance index (CPI) as the performance factor for the Cooling System Work Breakdown Structure (WBS) eleme..

  Influence the customer perceptions

How does a company use marketing tools and techniques to create brand awareness and value in the marketplace to influence the customer's perceptions

  Normal balance of the account discount on bonds payable

What is the normal balance of the account Discount on Bonds Payable? Is it added to or subtracted from the Bonds Payable account to determine the carrying.

  Difference between independent-mutually exclusive project

What is capital budgeting and what is the difference between independent and mutually exclusive projects?

  What is the dollar profit

U.S. investors have $900,000 million to invest 1-year deposit rate offered by U.S. banks = 3.5% 1-year deposit rate offered on Australian $ = 3% 1-year forward rate of Australian $ = $0.64 Spot rate of Australian $ = $0.62

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