What is the outstanding balance now at the end

Assignment Help Financial Accounting
Reference no: EM132995848

Questions -

Q1. A lender providing a loan of $9 million requires semi-annual payment of interest at a nominal rate of 10% compounded semi-annually, and repayment of the $9 million principal at the end of 5 years. The borrower plans to accumulate the principal for repayment at the end of 5 years using level semi-annual deposits into a sinking fund that earns interest at an annual nominal rate of 5.8% compounded semi-annually. What is the borrower's total cash outlay every 6 months?

Q2. A 20-year mortgage of $750,000 at an annual nominal rate of 10% compounded monthly has been paid with level payments for 17 years so far. Over the last 17 years, there have been 12 separate occasions when the borrower, Rachel, has managed to pay an additional $6900 against the outstanding balance. As a result, if Rachel continues with the same monthly rate, the mortgage will be paid off in only 14 more months. What is the outstanding balance now at the end of the 17th year?

Q3. If a 10-year bond of face value of $1500 with semi-annual coupons of 7% has an annual nominal yield convertible semi-annually of 3.9%, what is the price of the bond?

Reference no: EM132995848

Questions Cloud

Compute the Company ratio : Using the information above, compute the Company's ratio below and comment on each: Current ratio and Asset Turnover
Configure the smart devices to register : Configure the Smart Devices to register with your Registration Server and Select Wireless tab from left. Enter RemoteNet for the SSID
Components of internet of things : Create a home office with the criteria and devices given in the town of Byron Heads - explain and demonstrate various components of Internet of Things (IoT)
Problem - Prepare the Statement of Cash Flow : Prepare Statement of Cash Flow - Equipment costing P600,000 and having a book value of P350,000 and accumulated depreciation of P250,000 was sold for P350,000
What is the outstanding balance now at the end : If Rachel continues with the same monthly rate, the mortgage will be paid off in only 14 more months. What is the outstanding balance now at the end
Calculate the amount of depreciation loss for the year ended : Calculate the amount of depreciation loss for the year ended 31 March 2019 for Jason's business assuming the pool method is used for all assets costing
Critique of business strategy : An analysis of relevant trends associated with the industry in which the business is located - analysis of the business market and the competition
What is the ending inventory : During the current year, the selling price of a certain inventory increased from P200 to P300. What is the ending inventory
Journalize the entries to record the october transactions : Journalize the entries to record the October transactions - Oct. 9. Borrowed $7,100,000 from St. Peter City Bank, giving a 4% mortgage note

Reviews

Write a Review

Financial Accounting Questions & Answers

  Identify the general journal entry

Mary Martin, the owner of Martin Consulting, Inc., started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting, Inc. will make to record the transaction. Cash 40,000 Common Stock 40,000 Common Stock..

  Calculation of firms dollar growth in dollars and analyse

calculation of firms dollar growth in dollars and analyse how the growth financed.1.middleton clinic had total assets

  Should firm change debt-equity ratio if goal is to maximize

Should firm change its debt-equity ratio if the goal is to maximize the value of the firm? Explain. Find firm value according to MM Proposition with taxes?

  Find what is the share intrinsic value

A company has just paid an annual dividend of 15 cents per preference share. If the required rate of return is 15%, what is the share's intrinsic value?

  How to calculate the npv of adding tennis lessons

How to calculate the NPV of adding tennis lessons? How do i know which one should include in the cash flow?

  What is the present value of a five-year ordinary annuity

What is the present value of a 5-year ordinary annuity of $4,000 per year plus an additional $1,500 at the end of Year 5 if the interest rate is 7%?

  Set the local currency price for the market at a level

For a currency market of your choice - state date and nominal exchange rate used. Set the local currency price for the market at a level

  How covid affected

How Covid-19 affected the M2 and M3 and which monetry aggregates affected more by the recent pandemic. Explain in detail.

  Which of the types of loans will require

Which of the types of loans will require you to borrow the highest amount in order to obtain the use of $4,000 for one year?simple interest./ discount interest

  Compute what is the break-even sales in dollars

An average of 3,250 slices of pizza are sold each month. What is the break-even sales in dollars? (Hint: Break-even sales = Fixed expenses /CM Ratio)

  Calculate the net income reported by winston for each

Calculate the net income reported by Winston for each of the three years, assuming it accounts for its investment in Fullbright using (a) the cost method and (b) the equity method

  What is the price of the stock

A stock has a beta of 1.2, the riskless rate is 0.04 and the market premium is 0.6. What is the price of the stock

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