What was the size of his first payment

Assignment Help Financial Management

Reference no: EM131993760

Starting on September 1, 2000 - the day he starts college - and ending on September 1, 2004, Craig borrowed $4000 a year to pay for college expenses (i.e. that's 5 withdrawals total).

After graduation, he decided to go to graduate school in mathematics, and his loans were deferred (i.e. they accrued interest, but no payments were due). After finishing graduate school, he began repaying his loans.

Beginning on July 1, 2007, he made monthly payments for 12 years. Each payment increased by 1.3% over the previous payment.

If his loans had a fixed nominal rate of 7.8% convertible monthly for the entire life of the loans, what was the size of his first payment?

Reference no: EM131993760

Questions Cloud

Calculate the entropy change for the system : Using standard absolute entropies at 298K, calculate the entropy change for the system when 2.48 moles of CO2(g) react at standard conditions.

Calculate the present value of this stream of cash flows : The state lottery's million-dollar payout provides for $1.1 million to be paid in 25 installments of $44,000 per payment .

Examine the impact of employee training : MGT205 - Examine the impact of employee training and development on organizational profits - Reflect on this within your own organization; and propose changes

The present value of the due is : The state lottery's million dollar payout provides for $1. 4 million to be paid in 25 installments of $56,000 per payment

What was the size of his first payment : Beginning on July 1, 2007, he made monthly payments for 12 years. Each payment increased by 1.3% over the previous payment.

What is its conjugate acid and base : Write the chemical equation of mixing carbonate (CO32-), which is a base, with water and what is its conjugate acid and base.

The upper crusts cash flow from operations for 2008 : Statement of Cash Flows In 2008, Upper Crust had cash flows from investing activities of -$270,000 and cash flows from financing activities of -$163,000.

Prepare a statement of cash flows for 2013 for salza : Salza Technology Corporation increased its salesfrom $375,000 in 2012 to $450,000 in 2013 as shown in the firm ' s income statements presented below.

Calculate the statistics given below : State of Nature Probability Investment A Return Investement B Return I 0.25 6% 15% II 0.4 9% 12% III 0.35 5% -3% .

User Account

All Pages