The loan reauires monthly repayment

Assignment Help Financial Management

Reference no: EM131444335

Steven went to college on a student loan of $80,000 at 12%. The loan reauires monthly repayment over 5 years upon graduation. Upon his graduation 2 years ago, Steven started to pay it off. Steven is now considering paying it off once and for all. How much should he pay?

Reference no: EM131444335

Questions Cloud

How much interest will you end up paying over life of loan : Suppose that you take out a loan for $300000 to purchase a house. You are required to make monthly payments, and the APR is 6%. How much interest will you end up paying over the life of the loan (30 year mortgage)?

Save money to meet three objectives : Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $27,000 per month for 25 years, with the first payment received 30 years and 1 month from now. He can af..

What is the duration of a four-year treasury bond : What is the duration of a four-year Treasury bond with a 9.5 percent semiannual coupon selling at par? What is the duration of a three-year Treasury bond with a 9.5 percent semiannual coupon selling at par?

Dso and accounts receivable : DSO AND ACCOUNTS RECEIVABLE Ingraham Inc. currently has $810,000 in accounts receivable, and its days sales outstanding (DSO) is 60 days. It wants to reduce its DSO to 30 days by pressuring more of its customers to pay their bills on time.

The loan reauires monthly repayment : Steven went to college on a student loan of $80,000 at 12%. The loan reauires monthly repayment over 5 years upon graduation. Upon his graduation 2 years ago, Steven started to pay it off. Steven is now considering paying it off once and for all. How..

What is the external financing : Use the below information to answer the following question. Income Statement For the Year Sales $42,700 Cost of goods sold 29,250 Depreciation 3,750 Earnings before interest and taxes $ 9,700 Interest paid 1,360 Taxable income $ 8,340 Taxes 2,840. Th..

What will be the companys return on equity : Pacific Packaging's ROE last year was only 3%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 45%, which will result in annual interest charges of $564,000. The firm has no plans to use preferred stock..

Enough funds for retirement : Suppose you wish to retire 35 years from today. You determined that you need $120,000 per year after you retire, with the first retirement funds withdrawn one year from the day you retire and that you will need to make 25 such withdrawals. How much m..

What is its net income : Precious Metal Mining has $17 million in sales, its ROE is 10%, and its total assets turnover is 4x. Common equity on the firm’s balance sheet is 55% of its total assets. What is its net income? Write out your answer completely.

User Account

All Pages