How many payments should he make to repay the loan

Assignment Help Financial Management
Reference no: EM132052729

Waylon borrows $5,466 to be paid off in installments of $86.40 at the end of each month:

a) How many payments should he make to repay the loan, provided that the annual interest rate is 6.95%?

b) If the bank asks him to pay off the loan in four years, what is the monthly payment?

c) If the bank reduces the annual interest rate by 1.5% and asks him to pay off the loan in four years with a monthly payment of $113.24, could he borrow more or less than he is borrowing now? How much more or less?

I have to enter the problem into an excel spreadsheet like this one:

Relevant Information




Annual Interest Rate




Periods Per Year




Number of Years










Needed Information




Present Value



PV
Future Value



FV
Payment



PMT
Rate



RATE
Number of Periods



NPER






Additional Calculations (if needed)




 

Reference no: EM132052729

Questions Cloud

How much will still be owed after making payments : You want to take out a $132,000 mortgage (home loan). The interest rate on the loan is 4.9%, and the loan is for 30 years.
Calculate the optimal order quantity : A watch repair shop buys batteries for a variety of products. The most frequent battery purchase is for a Y300, with demand of 3,000 per year.
The implications of risk aversion for financial decision : You do not want the money to decrease as that is a risk we don't want. What are the implications of risk aversion for financial decision-making?
Find wayne enterprises dividends : Wayne Enterprises has 100 million shares outstanding. Find Wayne Enterprises dividends using the residual dividend approach.
How many payments should he make to repay the loan : How many payments should he make to repay the loan, provided that the annual interest rate is 6.95%?
Overhead variance by adjusting the costs of goods sold : Calculate the overhead variance for the year and dispose of the overhead variance by adjusting the costs of goods sold.
Designing reports for a responsibility accounting system : List five important factors that should be considered in designing reports for a responsibility accounting system.
Provide a report on the options : Provide me a report on the options I may choose to fund my retirement and to collect my retirement. Include the costs and benefits for each alternative .
Why is the efficiency variance more useful for control : Why is the efficiency variance more useful for control purposes than the price variance? Please also provide examples.

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