What is the effective interest rate you will pay

Assignment Help Financial Management
Reference no: EM131456126

ou borrow $75,000 for a new car. The terms are you must repay in 36 equal installments with interest of 15% per year compounded monthly

a) What is the effective interest rate you will pay?

b) What is your monthly payment?

c) Consider you payment at the end of month 12, how much of that payment is used to reduce principal and how much is interest?

d) Like, 2.c, for the payment at the end of month 24, how much in prinical and how much is interst?

Reference no: EM131456126

Questions Cloud

Offer price of call option with strike price : The spot offer price of Google stock is $871.37 and the offer price of a call option with a strike price of $880 and a maturity date of September is $41.60.
Compute the difference in annual equivalent cost : Compute the difference in annual equivalent cost of the two alternatives and select the more economic alternative.
Calculate the firms fixed asset turnover ratio : calculate the firm’s fixed asset turnover ratio.
What is the current yield on the bonds : Bourdon Software has 9.6 percent coupon bonds on the market with 20 years to maturity. What is the current yield on the bonds?
What is the effective interest rate you will pay : What is the effective interest rate you will pay? What is your monthly payment?
Decided to open lawn-mowing company : Charles has decided to open a? lawn-mowing company. Charles's implicit cost of production is $ per year?
Use current lease accounting rules : West Company leased a new machine from South Company on May 1, 2014 under a lease with the following information: use current lease accounting rules
Decided to open lawn-mowing company : Charles has decided to open a? lawn-mowing company. Charles's implicit cost of production is $ per year?
What is the appropriate classification of this lease : Jostens, Inc leases a machine from Justins Leasing. What is the appropriate classification of this lease for Jostens?

Reviews

Write a Review

Financial Management Questions & Answers

  Impression on investors and creditors

Prepare an income statement, balance sheet, and statement of cash flows under each of the two options and identify the option that results in financial statements that are more likely to leave a favorable impression on investors and creditors.

  Estimate cost of equity using a market risk premium

Smaltz Enterprises is currently involved in its annual review of the firm's cost of capital. Historically, the firm has relied on the CAPM to estimate its cost of equity capital. The firm estimates that its equity beta is 1.25, and the yiled to matur..

  Impact of futures hedge

Explain how the probability distribution of a financial institution's returns is affected when it uses interest rate futures to hedge. What does this imply about its risk?

  Proper risk-return management means

Proper risk-return management means that. Corporate governance is the. Institutional investors are important in today's business world because

  One mutual fund that reflects your investment style

You will be developing a simple portfolio that will be used for analysis over the following five weeks. This will also be used in your in-depth analysis of the entire portfolio for the Week Six Final Paper. You are given $10,000 to allocate to a port..

  What is the fund turnover rate

You want to borrow $38,400 and can afford monthly payments of $960 for 48 months, but no more. Assume monthly compounding. What is the highest APR rate you can afford? Use financial calculator. A mutual fund has $225 million dollars in assets, 22 mil..

  Calculate economic value added assuming its cost of capital

At the end of 2011 Home Depot’s total capitalization amounted to $28,986 million. In 2012 debt investors received interest income of $633 million. Net income to shareholders was $4,532 million. Calculate the economic value added assuming its cost of ..

  Why risk management might increase the value of a firm

Give two reasons why stockholders might be indifferent between owning the stock of a firm with volatile cash flows and that of a firm with stable cash flows. List six reasons why risk management might increase the value of a firm

  What is this firms debt-to-equity ratio

The firm's bonds trade with a yield to maturity of 8%, the risk-free rate is 3%, the beta of the firm's common stock is 1.5, and the market risk premium is 9%; if the firm were financed entirely with equity, the required return would be 10.85%. The f..

  Whats the bonds current yield and capital gain yield

Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells for $1,318. What’s the bond’s current yield, and capital gain yield?_________

  How large must the annual deposits be

If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the forty-second year?

  Treasury bonds which pay semi-annual coupons

Consider 3 Treasury bonds which pay semi-annual coupons. Bond A has 5 years remaining to maturity and a coupon rate of 10%. Bond B has 20 years remaining to maturity and a coupon rate of 10%, and Bond C has 20 years remaining to maturity and a coupon..

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!

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