Mortgage loan-what is effective annual rate

Assignment Help Financial Management

Reference no: EM131016102

You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage loan for 85 percent of the $2,500,000 purchase price. The monthly payment on this loan will be $16,600. what is effective annual rate?

Reference no: EM131016102

Questions Cloud

What was the firms operating cash flow : The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,400,000, $140,000 in the common stock account and $2,650,000 in the additional paid-in surplus account. What was the firm’s operating cash flow during 2014?

Calculate expected rate of return and standard deviation : Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? Calculate the expected rate of return and standard deviation for each investment.

Standard deviations of simulated distribution of cash flows : Bridgeway Pharmaceuticals manufactures and sells generic over-the-counter medications in plants located throughout the Western Hemisphere. What are the means and standard deviations of the simulated distribution of cash flows for Years 1 through 5? W..

Mortgage loan-what is effective annual rate : You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage loan for 85 percent of the $2,500,000 purchase price. The monthly payment on this loan will be $16,600. what is effective annual rate?

What is the present value of the savings : Your company will generate $76,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.75 percent, what is the present value of the savings?

Maintenance expenses costing-forecast revenues : Safe Bulkers is considering the purchase of a used bulk carrier for $8 million. The forecast revenues are $5 million a year and operating costs are $ 4 million. Maintenance expenses costing $2 million will be required after both the 5th year and 10th..

About retirement and estate planning : When should you start to think about retirement and estate planning? When should you start taking action? Why? Have you already started taking steps toward retirement? If so, when and why? If not, when do you plan to begin? Why? 75 to 150 words

Firms capital structure consists-yield to maturity on debt : A firm’s capital structure consists of 25% debt and 75% equity. The yield to maturity on its debt outstanding is 5%. Its tax rate is 40% and its cost of equity is 10%. What is its WACC?

User Account

All Pages