User Account

All Pages

We give additionally to the lender to eliminate the loan

Assignment Help Financial Management
Reference no: EM131880219

We receive a mortgage loan of $300,000 for 30 years.. The mortgage rate is 12% per annum. First, derive the monthly payment we ought to make to the bank to amortize the loan. Secondly, compute the remaining amount we still owe the bank, if we pay an additional single sum of $30,000 after 5years. Thirdly, as part of this computation find how many more months, we will pay the bank to induce the loan expire. Fourthly, if we accumulate a lot by year 15(end of the year), how much would we give additionally to the lender to eliminate the loan? PLEASE SOLVE IN DETAIL SHOW ALL WORK AND BOND FORMULAS USED.

Reference no: EM131880219

Questions Cloud

Suppose you have two bonds which pay annual interest : Suppose you have two bonds which pay annual interest, have 6 percent coupons, and currently have 6 percent yields to maturity.
Explain the major types of financing sources : Identify three major types of financing sources for healthcare organizations. Evaluate how each of these sources affects how an organization delivers.
What should you do immediately in the given situation : Imagine that you are driving a brand new car. You pull into your local gas station to fill up and after doing so you drive toward the exit.
What is one share of stock worth : A company you invested just paid annual dividend of $2.20 a share. What is one share of this stock worth to you if you require a 14 percent rate of return?
We give additionally to the lender to eliminate the loan : Fourthly, if we accumulate a lot by year 15(end of the year), how much would we give additionally to the lender to eliminate the loan?
Illustrating the importance of common goals : To illustrate the importance of common goals within a group answer the follow questions based on your experiences.
Find the incremental npv for the increased investment : Find the incremental NPV for the increased investment.
What design capacity would be needed to achieve : IIn a job shop, effective capacity is only 69 percent of design capacity, and actual output is 76 percent of effective output.
What is its coefficient of variation : Its variance of returns is 0.0103. All returns here are expresed as decimals, not percentages. What is its coefficient of variation?

Reviews

Write a Review

Financial Management Questions & Answers

  Assume riskfree rate and dividend yield

You want to hedge against your portfolio value declining more than 10% in 1 year. Currently, the S&P500 is standing at 2,000 and your portfolio has a beta of 1.8. You need to purchase 1-yr S&P500 put options. Find the exercise price of the index put ..

  Transactions takes place in secondary markets

Which of the following transactions takes place in secondary markets?

  What is the internal rate of return on this new building

Your company is considering the construction of a new building. The building will have an initial cash outlay of $7 million, and will produce cash flows of $3 million at the end of year 1, $4 million at the end of year 2, and $2 million at the end of..

  Determine the viability of the product

Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $129,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $584,000 p..

  What will be approximate capital gain of this bond

what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged?

  What was the company cash coverage ratio for the year

What was the company’s cash coverage ratio for the year?

  Required return exceed farleys required return

Bradford Manufacturing Company has a beta of 1.9, while Farley Industries has a beta of 0.75. The required return on an index fund that holds the entire stock market is 8.5%. The risk-free rate of interest is 6.75%. By how much does Bradford's requir..

  All operating cash receipts-operating cash expenditures

All operating cash receipts, operating cash expenditures, and applicable tax payments and credits are assumed to occur at the end of the year.

  Calculate value of option base on risk-neutral probabilities

Consider a two period binomial model where in each round the stock increases or decreases by 10%. The current stock price is $20 and the risk free rate is 3.33% each period. We first consider a European call option with a strike $20. Calculate the va..

  Calculating the weighted average cost of capital

When calculating the weighted average cost of capital, would it matter more if book values instead of market values were used for equity instead of debt?

  Share on common stock and is expected to increase

Upper Crust Bakers just paid an annual dividend of $2.80 a share on its common stock and is expected to increase that dividend by 4 percent per year for the foreseeable future. If the discount rate on Upper Crust is 11.50 percent, what is the current..

  What is the payback period of this investment

You are considering making a movie. The movie is expected to cost $ 10.5 million upfront and take a year to make. What is the payback period of this investment

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd