Nominal interest rate convertible quarterly

Assignment Help Financial Management
Reference no: EM13949510

Mike takes out a 10 year loan of 50,000 with a 15% nominal interest rate convertible quarterly. Mike makes level payments of Y at the end of each quarter assuming he wil take the entire term of 10 years to pay off the loan. However, with the 20th payment, Mike adds X, just to that payment, in order to pay off the loan exactly and early with the 30th payment of Y. Assume all other payments are Y. Calculate X.

A 2430 B 5350 C 10110 D 13830 E 19980

Reference no: EM13949510

Questions Cloud

Use the client table as the source for the mailing labels : Use Avery C2163 labels, and use the default font and color settings. (Hint: Make sure the English option button is selected in the Unit of Measure section.
Are sex and party affiliation related report the appropriate : Are sex and party affiliation related? Report the appropriate null and research hypotheses and the critical value (alpha = 0.05). In addition, provide your statistical conclusion, including calculation of test statistic and what the data suggests in ..
Describe a paradigm shift : Describe a paradigm shift and give an example of a paradigm shift in the secular world or in the Church.
Coefficient of performance : The second cycle receives energy by heat transfer from the reservoir at temperature T and rejects energy by heat transfer to a higher- temperature reservoir at 1440 K. If the heat pump cycles have the same coefficient of performance, determine (a)..
Nominal interest rate convertible quarterly : Mike takes out a 10 year loan of 50,000 with a 15% nominal interest rate convertible quarterly. Mike makes level payments of Y at the end of each quarter assuming he wil take the entire term of 10 years to pay off the loan. However, with the 20th pay..
What statistical test should be used to analyze these data : What statistical test should be used to analyze these data? Identify H0 and Ha for this study. Conduct the appropriate analysis.
What should a share of charlie company sell for : What should a share of Charlie Company sell for?
What is the maximum price you would pay for common stock : What is the maximum price you would pay for a common stock given that the risk free rate of return is 4%, the current dividend is $6.00, the return on the average stock in the market is 11%, the growth rate in dividends for the stock is 4% per year, ..
Determine the maximum theoretical rate of heating : Determine the maximum theoretical rate of heating provided by a heat pump, in kW per kW of power input, in each of two cases: The role of the cold  reservoir  is  played  by  (a)  the  atmosphere  at  2208C, (b) ocean water at 58C.

Reviews

Write a Review

Financial Management Questions & Answers

  Purchase perpetuity-immediate with semi-annual payments

Maggie wins the lottery and is awarded 500,000 at the beginning of each quarter for the next 20 years. The government takes 40% of her winnings and she spends 90% of what is left. At the end of 20 years the accumulated value in the account is used to..

  Find two consecutive years of financial statements

Provide recommendations for future business activity based upon your assessment. Cite references from your library research to support your conclusions of the company's performance based upon your analysis and financial ratio evaluations

  What must the coupon rate be on the bonds

Essary Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $1,000, and selling for $958. At this price, the bonds yield 6.4 percent. What must the coupon rate be on the bonds?

  A sample is provided in the doc sharing area.

A sample is provided in the Doc Sharing area.

  What price must each widget be sold for the company

The Orion Company will produce 75,000 widgets next year. Variable costs will equal 25 percent of sales, while operating fixed costs will total $110,000. At what price must each widget be sold for the company to achieve an EBIT of $120,000?

  Whats the sustainable growth rate

Abbott Lab made $2.80 net income per share last year and paid out $1.30 in dividend. The company had a book value (or equity) per share of $20. The market has a risk free rate of 3.1% and market return 11.1%.   Abbott has a historical beta of .90. Wh..

  Annual effective interest rate

Eliza takes out a $36000 loan at an annual effective interest rate of 6%. It is agreed that at the end of each of the first six years she will pay $1800 in principal, along with the interest due, and that at the end of each of the next eight years sh..

  Debt will be used to repurchase shares of stock

You currently own 600 shares of JKL, Inc. JKL is an all equity firm that has 75,000 shares of stock outstanding at a market price of $40 a share. The company's earnings before interest and taxes are $140,000. JKL has decided to issue $1 million of de..

  The arithmetic and geometric returns for the stock

A stock has had returns of 12 percent, 30 percent, 17 percent, −18 percent, 30 percent, and −7 percent over the last six years. What are the arithmetic and geometric returns for the stock?

  Certificate of deposit matures

Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures?

  Operating leverage due to the capital intensive nature

Abrams Steel Company has very high operating leverage due to the capital intensive nature of the steel business. Abrams' CEO is concerned about the variability in the firm's EPS if sales should drop, and decides to take action. Which of the following..

  Financial records-found old amortization schedule

William Chris opened a steak house a few years ago with his sister, Ruth. In going through their financial records they found an old amortization schedule that their lender had prepared when they took out a loan to start the business.

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