Repay the principal and the interest payment for the month

Assignment Help Financial Management

Reference no: EM131987010

Justin borrowed $2 million and planned to repay the loan by making equal month-end payments over a period of 10 years. The interest rate on the loan is 6%, compounded monthly.

(i) Calculate the amount of monthly payment.

(ii) Of the 60th payment, how much are used to repay the principal and the interest payment for the month?

(iii) Justin plans to pay off the loan immediately after making the 60th payment. What should the size of the lump-sum prepayment be?

Reference no: EM131987010

Questions Cloud

Objectives of a bank contingency funding plan : What are the objectives of a bank's contingency funding plan? Give a detailed description of what it includes and the purpose of each component.

Receive payment under one of the two arrangements : You have won a lottery and can choose to receive payment under one of the following two arrangements:

Egms system for respective states : Special Education Administrators are required to report their budgets in the eGMS system for their respective states.

Discuss and briefly explain concept of eliminating entries : Discuss and briefly explain the concept of eliminating entries and its carried forward Implication on the consolidated statement of financial position

Repay the principal and the interest payment for the month : Calculate the amount of monthly payment. how much are used to repay the principal and the interest payment for the month?

How many months after the decedents death : If the executor of a decedent's estate elects the alternate valuation date, and none of the property included in the gross estate has been sold or distributed

What makes a successful balanced scorecard for a health care : Describe the idea of balanced scorecard in modern health care delivery. What makes a successful balanced scorecard for a health care organization today?

Charitable trust arrangement in a fixed income interest : Which estate planning tool would be used in this scenario, CRUT, CRAT, pooled income fund or charitable lead trust?

Exceed the balance sheet item retained earnings : Dividend payments cannot exceed the balance sheet item "Retained earnings." This is known as the _____.

User Account

All Pages