Repaid in equal annual installments

Assignment Help Business Economics
Reference no: EM131460264

Big Brothers, Inc. borrows $133,069 from the bank at 10.81 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over The next nine years. How much were each annual payment be?

Reference no: EM131460264

Questions Cloud

What is the price of the stock : This dividend is expected to grow at a rate of 6.2 percent per year forever. The appropriate discount rate for Pharsalus's stock is 14.4 percent.
Prepare a memorandum discussing the issues involved : Prepare a memorandum discussing the issues involved and how the newly discovered issues should be addressed in finalizing the audit.
What percent of the students at this university are foreign : Records show that 5% of all college students are foreign students who also smoke. It is also known that 50% of all foreign college students smoke.
What is the present value : What is the present value of a $751 perpetuity discounted back to the present at 8.86 percent.
Repaid in equal annual installments : This loan is to be repaid in equal annual installments at the end of each year over The next nine years.
What are the primary cash flows relevant to the project : What are the primary cash flows relevant to this project? Is it an international project, and are there currency issues associated with the project itself?
What is probability that at least one of the bonds defaults : An analyst estimates that the probability of default on a seven-year AA rated bond is 0.06, while that on a seven-year A rated bond is 0.13.
What information does the external auditor use : The company has a reputation for hiring technologically competent auditors. What information does external auditor use to assess internal auditor's objectivity?
What percentage of people did not experience problems : In general, shopping online is supposed to be more convenient than going to stores. However, according to a recent Harris Interactive poll, 87% of people.

Reviews

Write a Review

Business Economics Questions & Answers

  Look for hidden premises and complex arguments

In this exercise, you have to look for hidden premises and complex arguments. As your text notes, A hidden premise is a premise that is implied, but not stated. Drug dealing should not be a crime because it does not directly harm others or force them..

  How many frisbees are being sold in equilibrium

(a) How many Frisbees are being sold in equilibrium? (b) How many (identical) firms are initially producing Frisbees?

  It used force to capture established ports like malacca

In which of the following ways did the English East India Company differ from the Dutch East India Company? It used force to capture established ports like Malacca. It began to concentrate on creating manufacturing centers in South Asia.

  The purpose of randomized pricing is to reduce

The purpose of randomized pricing is to reduce:

  What percentage will wages increase after the factory opens

Consider a city where a new automobile factory is scheduled to open. The factory will employ 1,000 people, and the city's employment multiplier for the automobile industry is 2.5. The city's elasticity of labor supply is 1.8, and its elasticity of la..

  Why can re be multiple steady states for a given

Why can re be multiple steady states for a given. What is maximum decit compatible with a steady state.

  What is the pre-tax annual rate of return on this bond

You buy a bond for $1118 that pays $20 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond?

  About the enrichment tax

One plan to raise money for Texas schools involves an “enrichment tax” that could collect $56 for every student in a certain school district. If there are 50,000 students in the district and the cash flow begins 2 years from now, what is the present ..

  Equilibrium price and quantity of logo shirts

Suppose incomes increase in the economy, and the number of sellers of logo shirts also increase. What will happen to equilibrium price and quantity of logo shirts?

  The firms operating cash flows

Assume that a new project will annually generate revenues of $2,100,000 and cash expenses (including both fixed and variable costs) of $500,000, while increasing depreciation by $250,000 per year. In addition, the firm's tax rate is 37%. Calculate th..

  Inelastic or unit elastic at the profit-maximizing price

Illustrate what price-quantity comb I country maximizes your firm's profits. Is Demand elastic, inelastic or unit elastic at the profit-maximizing price-quantity combination.

  Some of the advantages of technological innovation

Why innovation so important for firms to compete in many industries? What are some of the advantages of technological innovation? Disadvantages? Why do you think so many innovation projects fail to generate an economic return?

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