Payments received at the beginning of year

Assignment Help Financial Management

Reference no: EM131959620

1. A commercial bank will loan you $51,004 for 6 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 8.75 percent of the unpaid balance. What is the amount of the monthly payments?

2. When calculating how interest affects the total present and future value, how do you differentiate between payments received at the beginning of a year, and payments received at the end of a year? Does this have an effect on the total you receive?

Reference no: EM131959620

Questions Cloud

Discuss about the expected dividend yield : If Company X's stock is expected to pay a dividend of $1.25 during the next 12 months, growth rate of dividends is constant at 4.7%, and X's current price.

What are some of the factors that can affect a bond price : A company wishes to raise additional capital, yet, it doesn't want to dilute its stockholders' equity. How can a company expand its corporate presence.

Probability that supply of circuit boards will be exhausted : A company uses 83 circuit boards a day in a manufacturing process. The person who orders the boards follows this rule: Order when the amount on hand drops.

What interest rate is implied by a cash flow : The company you work for is looking to expand. As the CFO, you are tasked with comparing the cost of buying manufacturing equipment now, at a $250,000 discount.

Payments received at the beginning of year : how do you differentiate between payments received at the beginning of a year, and payments received at the end of a year?

What is the company background : The Company that you work for (Amazon) has excess capital that needs to be invested. Because you have knowledge of managerial finance, the top management team.

What is the capital structure weight for debt : A company zero coupon bond matures in 22years and has a yeild to maturiaty of 12.01%. Each zero coupon bond has a face vaule of $1000 and there are 2000.

How many shares must be issued in given case : A company wants to raise $100 million. Subscription price is $17, and the stock price is $27. The firm currently has 2,500,000 outstanding shares.

Calculate the dividend yield for the stock : Company x is expected to pay an end-of-year dividend of $5 a share on its common stock. After the dividend payment the stock is expected to sell at $110.

User Account

All Pages