Loan in ten equal annual instalments

Assignment Help Finance Basics
Reference no: EM132436119

You are interested in taking out a loan of $30,000 from your local bank. The bank charges you an interest rate of 5% per year, and you would like to repay the loan in ten equal annual instalments, each one paid at the end of the year. How much would you need to pay to the bank at the end of each year

Reference no: EM132436119

Questions Cloud

What is the after-tax salvage value : The tax rate is 21%. The equipment is classified as a 5-year property. What is the after-tax salvage value?
What is the yield to maturity of the? bonds : The bonds have a face value of ?$1,000, a coupon rate of 4% with coupons paid? annually, and they mature in 25 years.
What is the project net present value : The annual operating cash flow is $22,835. The cost of capital is 18 percent. What is the project's net present value if the tax rate is 32 percent?
Evaluate the argument that the Mongol Empires legacy : Evaluate the argument that the predominantly Muslim Delhi Sultanate and the predominantly Muslim Moghul Dynasty used the same regime maintenance methods
Loan in ten equal annual instalments : You are interested in taking out a loan of $30,000 from your local bank. The bank charges you an interest rate of 5% per year, and you would like to repay
What is the fair price for the bond? today : The bonds mature in three years and the next coupon is due in one year. What is the fair price for the bond? today?
Annual coupon rate and yield to? maturity : A 10-year bond pays interest of $ 27.70 semiannually, has a face value of $1,000, and is selling for $ 743.93. What are its annual coupon rate
Determining the dividends and capital gains : You invested in the? no-load Peanut Mutual Fund one year ago by purchasing 600 shares of the fund at the net asset value of ?$24.49 per share.
What is the cash flow of the project in year 4 : The annual cash flows are $34,514. What is the cash flow of the project in Year 4? That is, solve for CF4. Assume that the tax rate is 15%

Reviews

Write a Review

Finance Basics Questions & Answers

  Browsing on the mobile device

A 2014 survey of 280 American adults indicates that 30% of cell phone owners do their browsing on their phone rather than a computer or other device.

  How much will the equal monthly payments be

1. A homebuyer is taking out a mortgage with a balloon payment. The loan amount is $100,000 and the annual interest rate is 5%. The homebuyer will make equal monthly payments for 5 years except the last payment will include an additional payment of $..

  Operates a chain of taxidermy shops across the midwest

No cash changes hands up front. Does this mean that an analyst working for either company can evaluate the merits of this deal by assuming that the project has no initial cash outlay? Explain.

  Explain carefully why the futures price of gold can be

explain carefully why the futures price of gold can be calculated from the spot price and other observable variables

  Define external sources to fund the expected growth

Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $5.4 million.

  Approach from the material

You have decided shareholder activism is an appropriate strategy. Select one approach from the material to use and briefly note why you selected it.

  How much risk reduction could you achieve

How much risk reduction could you achieve, at no sacrifice in expected return, by making your portfolio an efficient one?

  Thatthe company plans to maintain its dividend payments

Consider the Industrial Supply Company example (Table 4.4) again. Assume thatthe company plans to maintain its dividend payments at the same level in 2011 asin 2010. Also assume that all of the additional financing needed is in the form ofshort-te..

  How would this rank order change

What is the risk factor associated with international investing that potentially can also be viewed as a benefit [and hence, a 4th reason to invest internationally -- see question #1]. IF this factor is trending favorably for your investment portf..

  Compute the effect on the net wealth of the investor

An investor with 2,000 shares in Shaw Holdings plc has contacted you for investment advice. She is undecided whether to take up the rights issue, sell the rights or allow the rights offer to lapse. Calculate the effect on the net wealth of the i..

  Discuss why capital structure management is more an art

discuss why capital structure management is more an art than a science. use saudi electronic university academic

  Description of arbitrage profits memo

For your job as the business reporter for a local newspaper, you are given the assignment of putting together a series of articles on the multinational finance and the international currency markets for your readers.

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