User Account

All Pages

What is the appropriate amount of equal annual payments

Assignment Help Accounting Basics
Reference no: EM131594432

Question - You owe $200,000 on a mortgage loan. You wish to repay the loan with 10 equal payments, one at the end of each year for the next 10 years, and a separate final $80,000 payment at the end of 11 years. What is the appropriate amount of each of the 10 equal annual payments? The interest rate is 8% compounded annually. Hint: The present value of the 10 equal payments for the first ten years plus the present value of the $80,000 at the end of the 11 year must equal the $200,000 amount of the mortgage loan.

$37,413

$28,327

$24,693

$16,751

$19,222

Reference no: EM131594432

Questions Cloud

Problems of hardware failure : Explain how they achieve their design goals to secure data integrity and to maintain data consistency while facing the problems of hardware failure.
The benefits of plea bargaining with importance of justice : A plea bargain may be acceptable to an innocent defendant if the appearance of guilt is strong
Calculate the cost of goods manufactured for february : Cool Cooking Tools Ltd, manufacturer of gourmet cooking utensils, uses job costing. Calculate the cost of goods manufactured for February
Review suicide as a result of cyberbullying : Analyze the significance of why suicide is becoming a more prevalent area of interest due to the wide-use of social media
What is the appropriate amount of equal annual payments : What is the appropriate amount of each of the 10 equal annual payments? The interest rate is 8% compounded annually
Information assurance class : Information Assurance class (computer security, implementation, monitoring, risk assessment)
Write an outline on social and cultural diversity paper : Identify your personal biases and how those biases may present challenges to you as a mental health professional. Remember, everyone has biases.
Create a strategic audit on two companies of your choice : Create a Strategic Audit on two companies of your choice that are within the same industry. During this audit, you will be comparing each company.
How your hypothetical project will impact the nursing career : An abstract is a concise summary of a larger project (a thesis, research report, performance, service project, etc.) that concisely describes the content.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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