What must be the size of each equal semiannual payment

Assignment Help Financial Management

Reference no: EM131863077

A person owes $3000 due in 6 months, but wished to resettle the debt as follows: $1000 cash today, $1000 cash at the end of 11 years, and the balance through 20 equal semiannual payments, the first due 6 months from now. If money is worth 16% compounded semiannually, what must be the size of each equal semiannual payment?

Reference no: EM131863077

Questions Cloud

Debt outstanding with market value : Joe’s Party Supply, Inc., currently has debt outstanding with a market value of $30.5 million and a yield to maturity of 6%.

What is the annual carrying costs of post card inventory : The ordering cost is $200 per order. What is the annual carrying costs of post card inventory.

Completed the purchase of new dell computers : Dubois Inc. has completed the purchase of new Dell computers. The report file must reveal the formulas that you create when a specific cell is clicked.

What will be the size of her daughter monthly withdrawals : Assuming the value of money will average 6% compounded monthly, what will be the size of her daughter's monthly withdrawals?

What must be the size of each equal semiannual payment : If money is worth 16% compounded semiannually, what must be the size of each equal semiannual payment?

Financial analyst in the finance department : As a Financial Analyst in the Finance Department of Zeta Auto Corporation, What will be the Net Present Value of the project?

Company wants to save money to meet three objectives : A company wants to save money to meet three objectives. how much will he have to save each month in years 16 through 30?

Inventory management costs of post card inventory : What is the annual total inventory management costs of post card inventory?

Hedge fund claims correlation coefficient : The hedge fund claims correlation coefficient between the annual returns on the S&P and the hedge fund in the same year is zero.

User Account

All Pages