Find the repayment to be made at the end of each period

Assignment Help Financial Management

Reference no: EM132036709

Use the information below to answer the following questions.

i. Assume the firm can produce a liter of orange juice in the U.S. and ship it to Spain for $2.75. If the firm wants a 60% markup on the product, what should the juice sell for in Spain?

ii. Now the firm begins producing the orange juice in Spain. The product costs 3.50 euros to produce and ship to Zambia, where it can be sold for 20 Kwacha. What is the dollar profit on the sale?

b) What is the present value of K800 to be received at the end of 8 years, assuming an interest rate of 20 percent, compounded quarterly?

c) What annual interest rate would you need in order to have an ordinary annuity of K7,500 per year accumulate to K279,600 in 15 years?

d) MoneyFlows Bank Plc. provides you with a loan valued at K10, 000 and you agree to repay the balance in 10 equal instalments, paid at the end of each period. The loan costs you 6% interest compounded semi-annually.

Required: (Round the answers to 2 decimal places)

i. Calculate the effective annual rate.

ii. Find the repayment to be made at the end of each period.

iii. Draw an amortization schedule for the first 3 periods.

Reference no: EM132036709

Questions Cloud

Maximum price ola industries should pay for equipment : What’s the maximum price OLA Industries should pay for the equipment?

Firm is looking to invest in new air-conditioning filters : Sal Enterprises is a local taxi company run by a sole proprietor, Sal Goodman. The firm is looking to invest in new air-conditioning filters.

What is the main difference between loan and bond : What is the main difference between a loan and a bond? Calculate the YTM of the bonds on January 1, 2012.

Actions described comply with the bankruptcy code : Determine whether the actions described comply with the bankruptcy code,

Find the repayment to be made at the end of each period : Calculate the effective annual rate. Find the repayment to be made at the end of each period.

Some lenders offer loans with biweekly payments : Some lenders offer loans with biweekly payments rather than monthly payments.

What is the main difference between loan and bond : What is the main difference between a loan and a bond? Calculate the YTM of the bonds on January 1, 2012.

Find the future value of the account : Find the future value of the account on December 1 using an Amortization Formula.

Estimates of total costs and benefits style of architecture : Estimates of total costs and benefits the style of the architecture of the building the timing of disbursements and receipts (a) and (c) above

User Account

All Pages