User Account

All Pages

Which payment term should patrick accept and why

Assignment Help Finance Basics
Reference no: EM131149976

Patrick needs to borrow $70,000 to start a business expansion project. His bank agrees to lend him the money over a 5-year term at an APR of 9.25% and will accept either monthly or quarterly payments with no change in the quoted APR. Calculate the periodic payment under each alternative and compare the total amount paid each year under each option. Which payment term should Patrick accept and why?

Reference no: EM131149976

Questions Cloud

How might your reserve bank help you with this problem : As the executive of a bank or thrift institution, you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your Reserve Bank help you with this problem
Supermarket is monitored using mean and range chart : Checkout time at a supermarket is monitored using a mean and a range chart. Six samples of n = 20 observations have been obtained and the sample means and ranges computed: determine upper and lower limits for mean and range charts. Upper limit for me..
Explain how change management : Explain how change management, in the context of Lewin's or Kotter's model (select only one), can help the organization become a socially-responsible organization
How much will your monthly payment have to change : You have just taken on a 30-year, 6%, $300,000 mortgage and would like to pay it off in 20 years. By how much will your monthly payment have to change to accomplish this objective?
Which payment term should patrick accept and why : Patrick needs to borrow $70,000 to start a business expansion project. His bank agrees to lend him the money over a 5-year term at an APR of 9.25% and will accept either monthly or quarterly payments with no change in the quoted APR. Calculate the pe..
Alculate your monthly payment and the amount of interest : If First Federal offers to structure the 9.5%, $100,000, 1 year loan on a monthly payment basis, calculate your monthly payment and the amount of interest paid at the end of the year. What is your EAR?
How much interest will you have paid and what is the bank : The First Federal Bank has advertised one of its loan offerings as follows:“We will lend you $100,000 for up to 5 years at an APR of 9.5% (interest compounded monthly.)” If you borrow $100,000 for 1 year and pay it off in one lump sum at the end of t..
Strategic management process includes the motivation : Strategy management requires strong links among missions, goals, objectives, strategy, and implementation. These components are associated with one of the four major activities. Which activities in the strategic management process includes the motiva..
Technology has contributed to the spread of globalization : How do you believe that technology has contributed to the spread of globalization in business? How has this impacted your life as a worker and as a consumer?

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the hyper-social organization

Describe the hyper-social organization. Explain the four pillars of a hyper-social organization.

  Smaltzs capital structure is comprised of 75 equity based

smaltz enterprises is currently involved in its annual review of the firms cost of capital. historically the firm has

  Why is the choice between the fifo-lifo inventory methods

why is the choice between the fifo-lifo inventory methods an interesting issue in capital market

  How a zero coupon bond provide profit

How a zero coupon bond provide profit?

  Please show work if possible green thumb garden centers

please show work if possible green thumb garden centers sells 240000 bags of lawn fertilizer annually. the optimal

  Which of the following best describes how corporations

Which of the following best describes how corporations are taxed on dividend income? Kleaner Kars has a return on assets of 6.75 percent, a total asset turnover rate of 1.3, and an equity multiplier of 1.6. Using the Dupont Identity, what is the retu..

  Calculate the investments geometric return

Calculate the investments geometric return (in other words, the annual return over the 5 years you owned it)

  The company has 530000 shares of stock outstanding and they

bauer softwares current balance sheet shows total common equity of 5125000. the company has 530000 shares of stock

  Draw a decision tree for the decision that buyu faces

Determine the range of values of the probability that SAEL will exercise its option, making the decision found in part c as optimal, and determine the expected value of perfect information about whether SAEL will exercise its option.

  Company in transportation business

Can you write a 6 pages report according to the attachment. Basically, this company is in transportation business.

  A network with a critical path

You have a network with a critical path A-B-C-D. For our purposes, you are allowed to ignore the other paths through the network. The values for optimistic (a), pessimistic (b) and most likely (m) durations for each task are as shown below.

  Problem regarding the debt financing

Do you need to know where the debt financing comes from first to know if a deal is good or not?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd