The amount of principal in the twentieth payment

Assignment Help Financial Management

Reference no: EM131520411

1. A loan of $39, 999.85 is to be repaid by payments at the end of each quarter for eight years. Each payment is 2% higher than its predecessor. The loan is made at a nominal rate of discount of 4% payable quarterly. Find the balance just after the 20th payment, the amount of interest in the twentieth payment, and the amount of principal in the twentieth payment.

2. A loan of $12, 500 is made at an effective interest rate of 8.5%. Payments are made at the end of each interest period. Each payment equals twice the interest due until the borrower pays off the outstanding debt with a final payment of, at most, $1, 800. Find the number of payments n and the amount of the final payment.

Reference no: EM131520411

Questions Cloud

What are the pros and cons of this strategy : What are the pros and cons of this strategy?

Strategy calls for selling oil in the spot market : An arbitrage opportunity exists; assume you own sufficient crude oil to execute it, if the strategy calls for selling oil in the spot market.

What is the equipment after-tax salvage value : What is the equipment's after-tax salvage value?

How many bonds must firm issue : The face value per bond will be $1,000. How many bonds must the firm Issue?

The amount of principal in the twentieth payment : A loan of $39, 999.85 is to be repaid by payments at the end of each quarter for eight years. the amount of principal in the twentieth payment.

Bonds issued-what is the yield to maturity : The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $989. What is the yield to maturity?

Required to make sixteen equal payments of principal : Marilyn Ho borrowed $24,000 from Stewart Financial Enterprises. She was required to make sixteen equal payments of principal.

What is the standard deviation of unit sales : What is the expected value of unit sales for the new product? What is the standard deviation of unit sales?

What is the firm weighted average cost of capital : What is the firm’s weighted average cost of capital (WACC2) if it has to issue new common stock?

User Account

All Pages