What is the quoted annual percentage rate on loan

Assignment Help Financial Management
Reference no: EM132068622

1. Annie lends you $50 today and you agree to pay him $55 in one week. What is the quoted Annual Percentage Rate on this loan given there are 52 weeks in a year?

2. How much do you have to deposit today so that beginning 11 years from now you can withdraw $9,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $18,000 in the last year? (period 15)? Assume an interest rate of 9 percent.

Reference no: EM132068622

Questions Cloud

Evidence of efficient or inefficient market : After the final price is determined for AMD, do you believe that this is evidence of an efficient or inefficient market? Explain.
Npv associated with leasing the equipment versus financing : What is the NPV associated with leasing the equipment versus financing it with the lease-equivalent loan?
Financial analyst by private equity firm : As a recent MBA graduate, you have been hired as a financial analyst by a private equity firm. Determine the MVA for AMD and NVDA and discuss the results.
What is necessary dollar amount of investment in bond : What's the necessary dollar amount of investment in 1-year bond today?
What is the quoted annual percentage rate on loan : What is the quoted Annual Percentage Rate on this loan given there are 52 weeks in a year?
What is the book value per share and price-earnings ratio : Makers Corp. had additions to retained earnings for the year just ended of $301,000. What is the book value per share? What is the price-earnings ratio?
What is the equity multiplier and return on equity : If Roten Rooters, Inc., has an equity multiplier of 1.63, total asset turnover of 2.50, What is the equity multiplier? What is the return on equity?
Considering expanding into online retailing : Smalltalk is a social media company that is considering expanding into online retailing.
The bidder is willing to offer to the shareholders : Determine the maximum share price that the bidder is willing to offer to the shareholders.

Reviews

Write a Review

Financial Management Questions & Answers

  The formula for the present value of an annuity

Look at the formula for the present value of an annuity. What happens to the present value as the number of periods increases? What distinguishes an annuity from a perpetuity? Why is there no formula for the future value of a perpetuity?

  What is the market risk premium-required rate of return

A stock has a beta of 2.2, the risk-free rate is 6 percent, and the expected return on the market is 12 percent. Using the CAPM, what would you expect the required rate of return on this stock to be? What is the market risk premium?

  Bank account to cover college expenses over next four years

Beginning three months from now, you want to be able to withdraw $3,700 each quarter from your bank account to cover college expenses over the next four years. Required: If the account pays .77 percent interest per quarter, how much do you need to ha..

  What is the company unlevered cost of equity capital

Twice Shy Industries has a debt−equity ratio of 1.8. Its WACC is 9.1 percent, and its cost of debt is 7.1 percent. The corporate tax rate is 35 percent. What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capi..

  Amounts relating to this mortgage

She wants your help in determining the following amounts relating to this mortgage:

  Intellectual capital information

Critically discuss the role of non-financial information – e.g., intellectual capital information

  Raising the additional funds needed

Prepare a memo to you staff explaining the steps that will be needed to construct a pro-forma financial statement for your company. Be sure to address the following: The forecast 201 x income statements, The forecast the 201x balance Sheet, Raising t..

  Several factors affect firms need for external funds

Several factors affect a firm’s need for external funds. Evaluate the effect of each following factor and place a check next to each factor that is likely to increase a firm’s need for external capital—that is, its AFN

  Contribution to your individual retirement account

You have just made your first $4,500 contribution to your individual retirement account. Assume you earn a 11.30 percent rate of return and make no additional contributions. What will your account be worth when you retire in 39 years? What if you wai..

  What is the addition to retained earnings

Billy’s Exterminators, Inc., has sales of $607,000, costs of $314,000, depreciation expense of $66,000, interest expense of $43,000, a tax rate of 35 percent, and paid out $78,000 in cash dividends. What is the addition to retained earnings?

  Create a decision tree-using treeplan

Create a decision tree, using TreePlan. What recommendation, based on expected value, would you give James?

  How much net new equity was raised

As a soon-to-be business baccalaureate, How much net new equity was raised (or retired)?

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