Total number of monthly payments to pay off the loan

Assignment Help Financial Management

Reference no: EM132038868

1. Equipment is purchased for $12,000, and is expected to be sold after 10 years for $2,000. Estimated maintenance is $1000 the first year, and maintenance costs are expected to increase by $200 each year thereafter. Using a 4% interest rate, find the present worth of the project.

2. A $45,000 direct reduction loan is financed at 9.25% per annum. The monthly payment is $385. What is the total number of monthly payments to pay off the loan? What are the amounts paid toward interest and principal in the 14th period? What is the remaining principal balance after the 14th payment has been made?

Reference no: EM132038868

Questions Cloud

How do you solve for the number of quarters : How do you solve for the number of quarters until an account's balance is zero?

Loaded up fund and economy fund : Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.75%. Loaded Up Fund? Economy Fund?

How do you solve for ordinary annuity in months : Mr. Gordon plans to invest $600 at the end of each month in an account that pays 6%, compounded monthly. After how many months will the account be worth $70,000

How do you solve for annuity due : How much will have to be invested at the beginning of each year at 10%, compounded annually, to pay off a debt of $70,000 in 10 years?

Total number of monthly payments to pay off the loan : The monthly payment is $385. What is the total number of monthly payments to pay off the loan?

Suppose a recent college graduate first job : Suppose a recent college graduate's first job allows her to deposit $200 at the end of each month in a savings plan that earns 6%, compounded monthly.

Make house down payment at a mutually agreed : You borrow $20,000 from your parents to make a house down payment at a mutually agreed upon annual interest rate of 5%,

What is the probability that they are all defective : If a customer selects 3 cartridges at random from the shelf, what is the probability that they are all defective? (Round your answer to five decimal places.)

Interview schedule must conform to the conditions : Each applicant is to be interviewed exactly once, and the interview schedule must conform to the following conditions:

User Account

All Pages