What is the present value of this two year loan

Assignment Help Financial Management

Reference no: EM13727276

Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year. The annual interest rate is 12% and payments begin in one month. What is the present value of this 2-year loan?

Reference no: EM13727276

Questions Cloud

Interest with monthly compounding : Approximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years, during which time the fund will earn 8% interest with monthly compounding?

Explain the alliances to which the empire belonged : The alliances to which the empire belonged and their primary allies. How concerns for security, strength, and wealth led the empire to enter these alliances

Revenues and costs are after tax : You can invest in a machine that costs $500,000. You can expect revenues net of any expense, except machine costs, of $150,000 at the end of each year for five years. You will subcontract the maintenance costs at a rate of $20,000 a year, to be paid ..

Various elements of the research project : During the past few weeks, you have considered the various elements of the research project. Compile all of the sections of your research strategy ideas. Retrieve your survey results this week to complete your final project.

What is the present value of this two year loan : Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year. The annual interest rate is 12% and payments begin in one month. What is the present value of this 2-year loan?

Identify ethical perspectives in the global organization : Identify a global organization with a multinational presence. Identify ethical perspectives in the global organization

Interest rate and cash flows : How much more is perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume a 10% interest rate and cash flows at end of period.

What is the present value of the payment stream : What is the present value of the following payment stream, discounted at 8% annually: $1,000 at the end of year 1, $2,000 at the end of year 2, and $3,000 at the end of year 3?

Write an essay on the ancient greco-roman world : Study of the ancient Greco-Roman world. history, art, philosophy, poetry, and drama are consulted. Fiero, Gloria K. Landmarks in Humanities. London: Laurence King Publishing Ltd., 2013.

User Account

All Pages