What tools would you use to amortize a loan

Assignment Help Financial Management
Reference no: EM131558651

Assume you work for a lending institution and one of your regular customers has approached you to borrow $200,000 to purchase a fleet of trucks for her company. Explain what it means to amortize a loan. What tools would you use to amortize a loan? Why is amortization beneficial to the lender? Why is it beneficial to the borrower? The final product will be a paper that is 1-2 double-spaced, APA formatted pages, a reference list should also be included on a new page after the body of your paper.

Reference no: EM131558651

Questions Cloud

What is service recovery paradox : Give five examples of self-service technologies. What are the five levels of customer expectations. What is service recovery paradox
Explain what the implications are for risk management : List three tasks or management areas in a financial institution that are. explain what the implications are for risk management.
What is the company net income : Aquilera, Inc., has sales of $19.5 million, total assets of $14.5 million, and total debt of $5.3 million. What is the company's net income?
Benefit that attracts investors into mutual funds : Which of the following is NOT a benefit (or advantage) that attracts investors into mutual funds?
What tools would you use to amortize a loan : Explain what it means to amortize a loan. What tools would you use to amortize a loan?
Statements is incorrect regarding single stock futures : Which of the following statements is incorrect regarding single stock futures?
You put your inheritance in an account that earns : If you put your inheritance in an account that earns 7 percent interest compounded annually, how many years will it be before your inheritance grows to $33,000?
Balance of inventory and balance of depreciation : What is the balance of inventory and the balance of depreciation on Brenda's Bar and Grill’s balance sheet?
What is your projected project IRR : If you have a 5 year holding period, what is your projected project IRR?

Reviews

Write a Review

Financial Management Questions & Answers

  Market value of the house-mortgage

A person has a net asset of $1 million, including a $300,000 net equity of a house (market value of the house – mortgage). Specifically, the house has a market value of $600,000 including $400,000 for the structure and $200,000 for the land, and a mo..

  Make the company less likely to proceed with the investment

Weisbach Electronics is considering investing in India. Which of the following factors would make the company less likely to proceed with the investment?

  Market risk premium and real risk-free rate

Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.3% rate of inflation in the future. The real risk-free rate is 1%, and the market risk premium is 4%. Manning has a beta of 1.9, and its realized rate of..

  Government-funded pension plan

A junior employee, who just turned 25, decides to set up a personal retirement fund to supplement her government-funded pension plan during her first 20 years of retirement. She wants to have an annual income of $50,000 starting when she turns 65 and..

  The present value of your winnings

You have just won the lottery and will receive $570,000 in one year. What is the present value of your winnings?

  Describe the criteria by which we can assess ratio results

By what means can we determine whether a ratio result is good, bad, or indifferent ? In essence, list and briefly describe the criteria by which we can assess ratio results.

  The state makes the first payment right away

The Grand Prize in a State Lottery is $900000, which will be paid in 20 equal annual payments of $45000 each. The State makes the first payment right away.

  For what share price is there margin call

A trader buys 100 shares of a stock on margin. The price of the stock is $30. The initial margin is 60% and the maintenance margin is 40%. How much money does the trader have to provide initially? For what share price is there a margin call?

  Use as initial investment in fixed assets when evaluating

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $5.5 million in anticipation of using it as a warehouse and distribution site, but the comp..

  Considering proposed project for its capital budget

Shao Industries is considering proposed project for its capital budget. What is project's expected NPV, its standard deviation and its coefficient of variation.

  Stock according to the capital asset pricing model

what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)?

  Dividends may be paid in cash or stock

Dividends may be paid in cash or stock. A cash dividend reduces a corporation's cash and retained earnings. A stock dividend does not affect corporation's cash or equity

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