Flat and purchased restaurant with proceeds

Assignment Help Financial Management
Reference no: EM132014370

Terry has just sold his flat and purchased a restaurant with the proceeds. The cost of the restaurant to Terry is €200,000 and the seller requires a 20 per cent up-front payment. Terry is able to pay the up-front payment from the proceeds of the flat sale. He needs to take out a mortgage and has been able to arrange one with Fry Bank that charges a 12 per cent APR. Terry will make equal monthly payments over the next 20 years. His first payment will be due one month from now. However, the mortgage has a 10-year balloon payment option, meaning that the balance of the loan could be paid off at the end of year 10. There were no other transaction costs or finance charges. How much will Terry's balloon payment be in 8 years?

Reference no: EM132014370

Questions Cloud

What is the best project according to the irr method : What is the best project according to the payback method? What is the best project according to the IRR method?
Relevant with respect to swaps and other derivative contract : What does a delta of .8 mean? Why is this number relevant with respect to swaps and other derivative contracts?
Tax will all of the partners have to pay on the swap income : ABC is a hedge fund in the United States. how much tax will all of the partners have to pay on the swap income?
Is this contract a notional principal contract : Is this contract a notional principal contract? How much income and expense do A and B have in 2016
Flat and purchased restaurant with proceeds : Terry has just sold his flat and purchased a restaurant with the proceeds. How much will Terry's balloon payment be in 8 years?
What is the name of the chief financial officer : Step 1 is finding the most recent 10-k for your choice of Amazon . What is the name of the Chief Financial Officer?
What was jeffs annualized hpr on this investment : He uses an online broker that charges him $ 10.00 per trade. What was Jeff's annualized HPR on this investment?
Define absolute and relative risk aversion : Define absolute and relative risk aversion. What about investors with constant relative risk aversion?
Solve for the inflation rate : Suppose the real rate is 5.6% and the nominal rate is 11.24%. Solve for the inflation rate. Use the Fisher Effect equation.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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