Find the total payment

Assignment Help Financial Management
Reference no: EM13726071

On September 1, 2009, Susan Chao bought a motorcycle for $26,000. She paid $1,200 down and financed the balance with a five-year loan at a stated annual interest rate of 6.8 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2009). Two years later, at the end of October 2011, Susan got a new job and decided to pay off the loan.

If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2011?

Find Total Payment

Reference no: EM13726071

Questions Cloud

What is the inventory period : Garnishes, Inc. has sales for the year of $46,300 and cost of goods sold of $21,700. The firm carries an average inventory of $4,800 and has an average accounts payable balance of $4,400. What is the inventory period?
Digital organics has the opportunity to invest : Digital Organics (DO) has the opportunity to invest $0.98 million now (t = 0) and expects after-tax returns of $580,000 in t = 1 and $680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f..
Find monthly savings : Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $32,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second,..
What is the present value of purchasing and leasing the car : What is the present value of purchasing the car? What is the present value of leasing the car? What break-even resale price in four years would make you indifferent between buying and leasing?
Find the total payment : On September 1, 2009, Susan Chao bought a motorcycle for $26,000. She paid $1,200 down and financed the balance with a five-year loan at a stated annual interest rate of 6.8 percent, compounded monthly. She started the monthly payments exactly one mo..
To form complete portfolio with an expected rate of return : You are considering investing $1,800 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 4% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 4..
Explain the four stages of the demographic transition : Explain the four stages of the demographic transition: including birth, death, and growth rates; and the timing of the historical demographic transition in Europe and North America.
E commerce business : Write 1-2 paragraphs describing your idea (business goals & objectives) for your e-commerce business (for example, health-care related products selling, clothing sales etc.). Be sure to include information about your potential business, products, ..
How african americans had to also fight to obtain the rights : I was thinking about riting one connecting gay marriage to how african americans had to also fight to obtain the right to be legally married.

Reviews

Write a Review

 

Financial Management Questions & Answers

  What growth rate is expected for the companys stock price

The stock price of Jenkins Co. is $53. Investors require a 12 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.15 next year, what growth rate is expected for the company’s stock price?

  Capital budget methods

What is the project's NPV?

  Difficulty refinancing debt in tight credit conditions

It is noted that initially, leverage can be the least expensive form of capital. However, if potential lenders feel a firm is overly leveraged, they may charge a punitive rate, or refuse to lend all together. This can be disastrous if a firm needs to..

  Given the quantitative theory of money a what happens to

1 given the quantitative theory of moneya what happens to real gdp if the money supply is cut in half velocity is

  The great depression that began in the usa in 1929 saw a

the great depression that began in the usa in 1929 saw a collapse in the financial markets with significant economic

  Calculate and interpret the following variances

What does the budget data tell you about the nature of Wendover'spatients: Are they capitated or fee-for-service? (Hint: See the note to Exhibit 8.7.)

  Determine the appropriate after-tax cost of new debt

QRM, Inc.'s marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. After $12 per bond flotation costs, new bonds will net the company $966 in proceeds. Determine the appropriate after-tax cost..

  Evaluate stockholder required return

If the appropriate discount rate is 12% and the tax rate is 40%, which copier should be selected?  Why?  Be sure to quantify your answer.

  Its return on equity has dropped from 12.25

Moogle, Inc. is in the same business as Google, Inc., but has recently retired all its debt to become an all-equity firm. Its return on equity has dropped from 12.25% to 10.60% as a result of this

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Two pieces of equipment-truck and overhead pulley system

If considering adding two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $17,400, and that for the pulley system is $20,200. The firm's cost of..

  Determine the beta of one security by regressing the returns

Determine the beta of one security by regressing the returns for the share on the returns for the FT ALL Share Index and determine the co-variances for each pair of securities in the portfolio

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