How much principal is amortized with the first payment

Assignment Help Financial Management

Reference no: EM13811264

$70,000 is borrowed, to be repaid in three equal, annual payments with 12% interest. Approximately how much principal is amortized with the first payment?

Reference no: EM13811264

Questions Cloud

Total deductions from the scholarship and work-study wages : You have just been notified by the student aid and scholarships office that you would receive a regents' scholarship of $2,000 for the coming academic year. Furthermore, your application for a work-study program has also been accepted. You estimate t..

What is its present value : Perpetuity of $4,500 per year beginning today is said to offer a 13% interest rate. What is its present value?

Is management acting in the share holders best interests : Suppose you own stock in a company. The current price per share is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company management immediately begins f..

Is this a discount or premium bond : Compute the price of a 4.9 percent coupon bond with 15 years left to maturity and a market interest rate of 7.6 percent. What is the bond price? Is this a discount or premium bond?

How much principal is amortized with the first payment : $70,000 is borrowed, to be repaid in three equal, annual payments with 12% interest. Approximately how much principal is amortized with the first payment?

What is the minimum nominal rate of return : What is the minimum nominal rate of return you should accept, if you require a 5% real rate of return and the rate of inflation is expected to average 4.60% during the investment period?

What is the current balance on the loan : The Bull bank has a $100,000 30 year loan that was made 6 months ago to a homeowner who is making monthly payments to yield an interest rate of 7% compounded monthly. It would like to sell the loan to increase its overall liquidity. What is the curre..

How much will she have on a yearly basis for college career : Mr. J. J. Parker is creating a college fund for his daughter. He plans to make 15 yearly payments of $1500 each with the first payment deposited today on his daughter’s first birthday. Assuming his daughter will need four equal withdrawals from this ..

What are the implications of the difference : Assume you are the manager of a routine 30-bed medial unit in an acute care hospital. The total fixed costs of your unit are $500,000 per year. The variable costs of your unit are approximately $100 per day, at the typical level of patient acuity gen..

User Account

All Pages