Determine the formula to solve payment needed for a car loan, Financial Management

Assignment Help:

Which formula would you use to solve for the payment needed for a car loan if you know the interest rate, length of the loan, and the borrowed amount?  Describe.

To solve for k while the known values are PVA, n, and PMT, begin with the present value of an annuity formula, Equation 8-3b, like this:

Present Value of an Annuity Formula, Table Method

PVA = PMT(PVIFA k, n)

After that, rearrange terms and solve for (PVIFA k, n) like this

PVA / PMT = (PVIFA k, n).


Related Discussions:- Determine the formula to solve payment needed for a car loan

WACC, WHAT ARE THE MAIN VIEWS OF WACC PREVALENT IN THE FINANCIAL MANAGEMENT...

WHAT ARE THE MAIN VIEWS OF WACC PREVALENT IN THE FINANCIAL MANAGEMENT LITERATURE

WACC, Keys Printing plans to issue a $1,000 par value, 10-year noncallable ...

Keys Printing plans to issue a $1,000 par value, 10-year noncallable bond with a 5.00% coupon, paid semiannually. It should sell at par. The company''s marginal tax rate is 40.00%

Nature of working capital, Nature of Working Capital: Working Capital ...

Nature of Working Capital: Working Capital Management is concerned with the problems that arise in attempting to organize the Current Assets, the inter-relationship and Curren

Analysis on the stocks, Yellow: is the company which their stock performanc...

Yellow: is the company which their stock performance was forecasted by analyst Blue: is the name of the company which made the recommendation by the analyst who work for it R

What is the annual tax shield, what is the annual tax shield to a firm that...

what is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million,if the average interest rate on debt is 8.5% and the marginal tax rate i

Explain about the liquidity premium theory of interest rates, Explain about...

Explain about the liquidity premium theory of the term structure of interest rates. Liquidity premium theory: Liquidity premium theory asserts which, into a world of unce

Planning, how to do assignments based on these topics more specifically?

how to do assignments based on these topics more specifically?

Illustrations of substantive tests, Illustrations of substantive tests ...

Illustrations of substantive tests Agree a sample of wages payments to the existence of these individuals and personnel records. Agree a sample of cashbook payments to

Explain the term - financial analysis, Financial analysis The purpose o...

Financial analysis The purpose of financial statements is to provide information to all the users of these accounts to assist them in their decision-making. It has to be concer

Explain the term present value of the firm’s operations, Explain the term “...

Explain the term “present value of the firm’s operations” (also known as Enterprise Value).  What does this number represent? The present value of the free cash flows of the comp

Write Your Message!

Captcha
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