What will be the monthly loan payment

Assignment Help Finance Basics
Reference no: EM131105631

You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR?

Reference no: EM131105631

Questions Cloud

Why would a company wish to reduce its bond indebtedness : Why would a company wish to reduce its bond indebtedness before its bonds reach maturity?
Find values using the equations and then a financial calc : Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. a. An initial $500 compounded for 1 year at 6% b. An initial $500 compounded for 2 years at 6% c. The present value of $500 due in..
How does the call feature affect the amortization of bond : What is the "call" feature of a bond issue? How does the call feature affect the amortization of bond premium or discount?
Will the amortization of discount on bonds : Will the amortization of Discount on Bonds Payable increase or decrease Bond Interest Expense? Explain.
What will be the monthly loan payment : You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly. What will be the monthly loan payment? What will be the lo..
What is its present value and its future value : An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? its future value?
How should the costs of issuing these bonds be accounted : How should the costs of issuing these bonds be accounted for and classified in the financial statements?
Zopf company sells its bonds at a premium : Zopf Company sells its bonds at a premium and applies the effective-interest method in amortizing the premium. Will the annual interest expense increase or decrease over the life of the bonds? Explain.
What would its future value be : What's the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this was an annuity due, what would its future value be?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain which account would earn more money for the investor

Explain which account would earn more money for the investor

  If the appropriate interest rate is 11 percent what kind of

in september 2011 the tennessee titans signed running back chris johnson to a contract reportedly worth 56 million.

  Make a cash budget

Of Sharpe's sales 10 percent is for cash, another 60% is collected in the month following sales, and 30% is collected in the second month following sales.

  Organizations that decide to issue bonds generally go

organizations that decide to issue bonds generally go through a series of steps. discuss the six steps.an alternative

  Suppose the euro is quoted at 07064-80 in london and the

suppose the euro is quoted at 0.7064-80 in london and the pound sterling is quoted at 1.6244-59 in frankfurt.nbspa is

  Analyze the steps involved in capital budgeting financial

Create a brief scenario in which you highlight the value of break-even and profitability analysis for a health care organization.

  Boisjoly watch imports has agreed to purchase 15000 swiss

boisjoly watch imports has agreed to purchase 15000 swiss watches for 1 million francs at todays spot rate. the firms

  Engaging in the time value of money discussion

Engaging in the time value of money discussion

  The starr co just paid a dividend of 215 per share on its

the starr co. just paid a dividend of 2.15 per share on its stock.nbsp the dividends are expected to grow at a constant

  Which one of the following sales prices should you use

You would like to test the sensitivity of the project's NPV to the sales quantity. Which one of the following sales prices should you use in your analysis?

  After investing the additional funds she wants the funds

portfolio beta a mutual fund manager has a 20 million portfolio with a beta of 1.5. the risk-free rate is 4.5 and the

  Recommend discontinuing transportation services

Two years have passed since the Phoenix STS program faced the loss of funding for its East Valley operations. During the two years, Phoenix STS has attempted to broaden the funding base of the entire program,

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