How much interest will you receive from the loan

Assignment Help Financial Management

Reference no: EM131985328

To raise money for a new business, a friend asks you to loan her some money. She offers to pay you $3000 at the end of 4 years. How much should you give her now if you want to earn 12% interest per year on your money? b. You have agreed to loan a friend $5000 for 5 years at a simple interest rate of 8% per year. How much interest will you receive from the loan?

Reference no: EM131985328

Questions Cloud

What is the incremental cash flow related to working capital : Six Twelve, Inc., is considering opening up a new convenience store in downtown New York City. The expected annual revenue at the new store is $600,000.

Compute the realized rate of return for an investor : Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

What would be the future value of a savings account : What would be the future value of a savings account started with $700, earning 10 percent (compounded annually) after 8 years?

Postal service competitors : Who are the United States Postal Service (USPS) competitors?

How much interest will you receive from the loan : You have agreed to loan a friend $5000 for 5 years at a simple interest rate of 8% per year. How much interest will you receive from the loan?

What is the maximum price per share that an investor : What is the maximum price per share that an investor who requires a return of 15?% should pay for Home Place Hotels common? stock?

What is the npv of the next five years of cash flows i : What is the NPV of the next five years of cash flows if Darren had four new pumps installed?

What principal is owed immediately the sixth payment : How much principal is in the 6th payment? What principal is owed immediately following the 6th payment?

How much of the second payment goes to pay principal : How much are the annual payments? How much of the second payment goes to pay principal?

User Account

All Pages