Find the amount of principal paid back in the second month

Assignment Help Financial Management
Reference no: EM131545957

Suppose you take out $5,000 loan at the Bank of SUNY, to be paid off, with monthly compounding, two years (I.e. In 24 monthly installments). The interest rate on that loan is 24% per year.

1. Find the monthly installment.

2. Construct the amortization schedule for the first two months only, and find the amount of principal paid back in the second month.

Reference no: EM131545957

Questions Cloud

What is the value of the firm : Suppose the growth rate of the firm's profits is 5%, the interest rate is 6%, and the current profits of the firm are $100 million dollars.
Analyzes methods used to appropriately manage groups : Describe the benefits and drawbacks of having groups or teams in terms of groupthink vs. teamthink.Discussion should reveal insightful analysis of research.
Increase in insurance and the financial markets : Regulations have increased and continue to increase in insurance and the financial markets, partially to ameliorate financial instability.
Evaluate the impact of globalization on the value chain : Evaluate the impact of globalization on the value chain by applying elements from the Contemporary Value Chain model and additional decision-making factors.
Find the amount of principal paid back in the second month : Construct the amortization schedule for the first two months only, and find the amount of principal paid back in the second month.
What questions should you ask to operationalize cqi : Given the abundance of the evidence about best practices in patient care and evidence about how to improve quality and safety using CQI methods and tool.
Five values for different types of elasticity : Here are five values for different types of elasticity. (The numbers have been calculated for each case/market using the elasticity methods from your textbook).
Determine the pareto superiority : Why is it complicated to determine the Pareto superiority of how incentives are allocated? 3 sentences please
What is the role of the facilitator : How can continuous quality improvement set up an adversarial relationship between the administration and the clinical staff? What are some ways to overcome.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the stock beta

A stock has a required return of 16%; the risk-free rate is 5%; What is the stock's beta? New stock's required rate of return will be.

  About the derivative security

Which of the following is not a derivative security?

  Zero coupon treasury bonds for years

On March 11, 20XX, the existing or current (spot) 1-, 2-, 3-, and 4-year zero coupon Treasury security rates were as follows: 1R1 = 0.55%, 1R2 = 1.15%, 1R3 = 1.55%, 1R4 = 1.70% Using the unbiased expectations theory, calculate the 1-year forward rate..

  How much should you be willing to pay for this stock today

Assume that you plan to buy a share of XYZ stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $9.25 at the end of Year 2. how much should you be ..

  Total percentage return on this investment

You invest $150,000 in Germany when the exchange rate is $1.25/€. What is your total percentage return on this investment?

  Standard deviation of the optimal risky portfolio

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 4.2%. Solve numerically for the propo..

  Difference between a qualified and nonqualified plan

Which is a difference between a qualified and nonqualified plan?

  Growth rate in dividends is expected to be a constant

Bayou Okra Farms just paid a dividend of $3.65 on its stock. The growth rate in dividends is expected to be a constant 7 percent per year indefinitely. Investors require a return of 15 percent for the first three years, a return of 13 percent for the..

  Assume corporation has earnings before depreciation-taxes

Assume a corporation has earnings before depreciation and taxes of $109,000, depreciation of $47,000 and that it is in a 40 percent tax bracket.

  The purchase of new automated plant costing

A firm is contemplating the purchase of new automated plant costing $240,000 to replace a n existing machine that can be sold for $ 110 ,000 today . The existing machine (which can continue to be operated for a further four years) was purchased one y..

  Create a three-year pro forma income statement

Using Excel, create a three-year pro forma income statement for your organization - CAFE (or product/service).

  The tax treatment regarding the sale of existing assets

The tax treatment regarding the sale of existing assets that are sold for less than the book value results in an ordinary tax benefit. a capital loss tax benefit. recaptured depreciation taxed as ordinary income.

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