Ruby has purchased a new home that needs repair

Assignment Help Financial Management

Reference no: EM13873322

Ruby has purchased a new home that needs repair. She has gained approval for a home improvement line-of-credit for $100,000 that she will use to fix up the house over three years. Interest on line-of-credit loans is only incurred on the amount borrowed, not the limit of $100,000. She estimates that she will borrow $2,500 at the beginning of each month for three years starting today. At the end of the three years she will pay back the loan with equal payments over the following ten years with end of month payments. If the interest rate on the loan is 4% NAR with monthly compounding, what will be her payment at the end of each month during the ten years in which she pays off the loan. Anyone can guide in the right direction?

Reference no: EM13873322

Questions Cloud

A discount factor : A discount factor:

Firms dividend policy impacts firm ability to finance : Firm's dividend policy impacts firm ability to finance through:

Make per classroom and still turn an economic profit : Contracting Inc. is bidding upon a service contract for Harvard to maintain and upgrade three classrooms per year for the next nine years. The contract will require purchasing $1,872,000 in equipment that will be depreciated using straight-line depre..

Level of confidence of equally weighted portfolio : Choose any three ASX listed stocks and calculate 10-day VaR(Value at Risk) at 99% level of confidence of an equally weighted portfolio of these three assets at pertain point of time using Historical and Monte Carlo simulation. You can choose any size..

Ruby has purchased a new home that needs repair : Ruby has purchased a new home that needs repair. She has gained approval for a home improvement line-of-credit for $100,000 that she will use to fix up the house over three years. Interest on line-of-credit loans is only incurred on the amount borrow..

Raised the maximum amount of short-term funds : The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. What will be the firm’s quick ra..

Discuss the process that vw is going through in re-inventing : Discuss the ways that CRM systems will be leveraged during the recall process and discuss the ways that Supply Chains are impacted during the recall process

Explain the role and relationships among health care mission : Explain the role and relationships among health care mission

Prepare newton enterprises'' journal entry : Prepare Newton Enterprises' journal entry.

User Account

All Pages