What is the nominal interest rate compounded monthly

Assignment Help Financial Management
Reference no: EM131517763

You are given the following information about 30-year level payment loan of $1,000,000 issued on January 1, 1992 paid back monthly with first payment on January 31, 1992. Portion of monthly payment due on September 30, 1997 applied to interest 94.473% and portion of monthly payment due on October 31, 1997 applied to interest 94.418%. What is the nominal interest rate compounded monthly?

Reference no: EM131517763

Questions Cloud

How much interest and sinking fund payments : How much interest and sinking fund payments were made in 2005 and 2006 combined?
What is meant by quantitative research : What is meant by quantitative research? What are some important characteristics of it? What is meant by experimentation
What would be the bonds value : Suppose that two years after the bonds were issued, the required interest rate rell to 7 percent. What would be the bonds' value?
What was the average annual growth rate of marias salary : What was the average annual growth rate of Maria's salary?
What is the nominal interest rate compounded monthly : What is the nominal interest rate compounded monthly?
What is effective annual interest rate being paid on loan : What is the effective annual interest rate being paid on the loan.
Determine the current ratio for the construction company : Determine the current ratio for the construction company in Figures 6-3 and 6-4. What insight does this give you into the company's financial operations?
What is the markets reward-to-risk ratio : What is the Market's reward-to-risk ratio and Stock Z's reward-to-risk ratio
Manage work priorities and professional development : Prepare a 3000 word report that explain how to manage work priorities and professional development.

Reviews

Write a Review

Financial Management Questions & Answers

  Process of bidding construction contracts

Dixie Construction is a young firm that is in the process of bidding (and winning) construction contracts. While they are unable to pay any dividends today, once the contracts are awarded and their work begins in earnest, they expect to be able to st..

  International banks-arrange trade financing

The Eurocurrency market is time deposits of money in international banks located in a country other than the country that issues the currency. International banks: arrange trade financing. conduct foreifgn exchange transactions and assist in hedging ..

  How much will she owe just after her payment

When Maria Acosta bought a car 2.5 years ago, she borrowed $10,000 for 48 months at 7.2% compounded monthly. Her monthly payments are $240.39, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2.5-year mark..

  Which project would you accept and why

Projects a and b are mutually exclusive. project a costs 10,000 and is expected to generate cash inflows of 5,000 for 4 years. project b costs 10,000 and is expected to generate a single cash flow in year 4 of 23,000. the cost of capital is 12% which..

  Which investment strategy should smart banking

Smart Banking Corp. can borrow $5 million at six percent annualized, and it can use the proceeds to invest in Canadian dollars at nine percent annualized over a six-day period. Based on this information, which investment strategy should Smart Banking..

  Approach to retirement distribution at beginning of year

For how many years a retirement fund will last if one follows 4% approach to retirement distribution at the beginning of every year? Assume expected return and inflation to be 6% and 4.5% respectively?

  What is one of the basic characteristics of real estate

What is one of the basic characteristics of real estate? In making single-asset real estate investment decisions, the first pass often involves calculating a series of returns, ratios, and multipliers. Which of the following is often cited as a limit..

  How do financial systems affect the innovation capabilities

How do financial systems affect the innovation capabilities of firms? Compare two institutionally contrasting countries in your answer.

  What is your estimate of the stocks current price

A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 15% per year for the next 2 years, then at a constant rate of 5% thereafter. The company's stock has a beta of 1.2..

  What will be the value of the investment in two years

Your brother has asked you to help him with choosing an investment. He has $6,000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0400 annually with the interest being paid quarterly. What will be the..

  The index continues to grow at its historic rate

In Feb 2000 the NASDAQ composite index peaked at a level of 4,682. In Feb of 2006 it was at a level of 2,024. The NASDAQ index has historically grown at an average rate of 9.0%. If the index continues to grow at its historic rate, then how many years..

  Currency appreciation

Suppose that the exchange rate is 0.80 dollars per Swiss franc. If the franc appreciated 9% against the dollar, how many francs would a dollar buy tomorrow?

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