What is your annual payment to big attitude

Assignment Help Financial Management
Reference no: EM131012320

You are borrowing money to buy your first house that costs $350,000. You go to the first bank you see, Big Attitude Bank, and they are charging 4.25% interest. After taking this class, you decide to shop around and find a bank called Super Cheap that is offering interest at 3.75%. If you make annual payments for 30 years, a) What is your annual payment to Big Attitude? b) What is your annual payment to Super Cheap Bank? c) How much do you pay total for the life of the loan at Big Attitude and d) how much at Super Cheap Banks? e)How much real money would you save by going to Super Cheap bank? f) If you invest the annual savings you get from opting for Super Cheap bank in a savings account which offers a return of 8%, What would be the future value of the amount after 30 years?

Reference no: EM131012320

Questions Cloud

Calculate the value of cash and marketable securities : Mandesa, Inc., has current liabilities of $8 million, current ratio of 2 times, inventory turnover of 12 times, average collection period of 30 days, and credit sales of $64 million. Calculate the value of cash and marketable securities.
Research the role of the public health department : What factors do you think you control that will help you have a higher quality of health?
How much value will be forgone : Poston Inc. is considering Projects S and L whose cash flows are shown below. These projects are mutually exclusive (must choose one or the other) equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR,..
Find dimensions of channel for least expenditure of energy : A trapezoidal channel having side slopes of 2 horizontal and 1 vertical discharges 14.35 m3/s of water at a velocity of 1.0m/s. The channel lining has a roughness coefficient, n = 0.013. Find the dimensions of the channel for the least expenditure..
What is your annual payment to big attitude : You are borrowing money to buy your first house that costs $350,000. You go to the first bank you see, Big Attitude Bank, and they are charging 4.25% interest. What is your annual payment to Big Attitude? What is your annual payment to Super Cheap Ba..
How many edges does an n-cube have : How many edges does an n-cube have? Give your reason. How many (main) diagonals does a 4-dim cube have? Are any two of them perpendicular to each other?
Firm reduced its net working capital investment : The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.5 million, and the 2015 balance sheet showed long-term debt of $5.7 million. The 2015 income statement showed an interest expense of $180,000. Suppose you also know ..
Determine if the flow is turbulent or laminar : A trapezoidal channel with bottom width b = 5 ft and side slopes m = 2 (that is 2 horizontal over 1 vertical) carries Q = 100 cfs at depth y = 3.15 ft. The water temperature is 60 F, and the kinematic viscosity at this temperature is v = 1.217 * 1..
Assume that two investments are combined in a portfolio : Assume that two investments are combined in a portfolio. In words, what is the expected rate of return on the portfolio? What condition must be present for the portfolio to have lower risk than the weighted average of the two investments? Is it possi..

Reviews

Write a Review

Financial Management Questions & Answers

  Annual coupon bond with a required return

Consider a 10-year, 12 percent annual coupon bond with a required return of 8 percent. The bond has a face value of $1,000. Which of the following is correct?

  Considering two mutually exclusive projects

Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $75,000 and is expected to generate incomes of $48,000 at the end of year one and $45,000 at the end of year two. Project B costs $80,000 and is expected to genera..

  Firms dividend policy

To look at the firm's dividend policy, you look at RAD's financial statements for the last year. RAD, in 2013, had net income of $118 million (operating income $1,132 million), capital expenditures of $315.846 million, depreciation and amortization o..

  Interest compounded annually on deposits

Bank A pays 4% interest compounded annually on deposits, while Bank B pays 3% compounded daily. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assu..

  The variable cost of making one photo

Jane wants to setup a photo shop. The cost to rent an office is $150 per week. The variable cost of making one photo is $20 and she can sell it for $50. Jane has to sell photos per week to break even. If Jane sells 10 units, her profits would be doll..

  About the leveraging effect

Which of the following is true about the leveraging effect?

  What ways can thebusiness benefit from a web site

What Internet business model would be appropriate for the company to follow in creating a Web site and why and what ways can thebusiness benefit from a Web site?

  Increase or decrease-companys cash change

Increase or decrease. Based on the information below, by how much did the company’s cash change?

  Accumulated some money for your retirement

You have accumulated some money for your retirement. You are going to withdraw $63,260 every year at the end of the year for the next 19 years. How much money have you accumulated for your retirement? Your account pays you 19.83 percent per year, com..

  Corporate bond-which of the best describes this bond

A corporate bond makes payments of $9.67 every month for ten years with a final payment of $2009.67. Which of the following best describes this bond?

  Yield to maturity and yield to call

Settlement date 10/30/05 Maturity date 10/30/15 Coupon rate 10% Coupons per year 2 Face value $1,000 Selling Price (% of face Value) 115% It can be called in 8 years at $1070

  Calculate the present value of annuity

Calculate the Present Value of Annuity of receiving $5,000 each year for the next 12 years with interest rate of 7%. 8 Calculate the Future Value of Annuity of investing $6,000 each year starting now for 10 years at 5% interest rate. 9 How much would..

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