Make equal semi-annual payments-what is the EAR of the loan

Assignment Help Financial Management

Reference no: EM131022982

Fairfax Paint just borrowed 66,800 dollars. The terms of the loan require the company to make equal semi-annual payments forever. The first semi-annual payment is due in 6 months. If the regular semi-annual loan payment is 4,800 dollars, then what is the EAR of the loan?

Reference no: EM131022982

Questions Cloud

Write summary of commentaries on election and predestination : Summary Commentaries on Election and Predestination 23.280-312 and Institutes 21-24.920-987. Calvin, John, Library of Christian Classics. Louisville: Westminster John Knox Press, 1958.

What is the minimum annual revenue required from machine : A new machine costs $150,000, and lasts 10 years with salvage value of $15,000. Annual operating costs are $50,000. If you want to make a 20% return on investment, what is the minimum annual revenue required from this machine?

Implementation of this prt system would reduce traffic : Group 2 stated that if public approval was not extremely high, we would need to have a long line of investors to fund the project initially.

Find slope intercept form of the equation for straight line : You are asked to find the slope intercept form of the equation for a straight line and you are told that these two points are on that line: (x, y) = (10, 20) and (12, 18)

Make equal semi-annual payments-what is the EAR of the loan : Fairfax Paint just borrowed 66,800 dollars. The terms of the loan require the company to make equal semi-annual payments forever. The first semi-annual payment is due in 6 months. If the regular semi-annual loan payment is 4,800 dollars, then what is..

How paying attention to culture can make better communicator : Define culture and explain why it is important to understanding communication. Explain how paying attention to culture can make you a better communicator.

Value bond outstanding with a coupon rate : Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5 percent paid semiannually and 12 years to maturity. The yield to maturity on this bond is 5.6 percent. What is the price of the bond? (Do not round intermediate calculation..

About the cyclical phase of the stock market : Common stock mutual fund manager, Mr. Jim, forms expectations about the cyclical phase of the stock market when actively managing his fund portfolio. In what situation might Mr. Jim want to lower the average beta of the fund that he manages? Explain ..

Analyse annual reports of NAB : Analyse annual reports of NAB {National Australian Bank} in light of the reporting requirements imposed on accountants and those charged with governance of corporations

User Account

All Pages