Calculate the principal repaid in the first payment

Assignment Help Financial Management
Reference no: EM131322302

You borrow X for four years at an annual effective interest rate of 8%, to be repaid with equal payments at the end of each year. The outstanding loan balance at the end of the third year is 559.12. Calculate the principal repaid in the first payment.

Reference no: EM131322302

Questions Cloud

Manufacturer of musical instruments : Cowbell Corp. is a manufacturer of musical instruments. There are 53 million shares, each selling at $80 / share with an equity beta of 1.02. The risk-free rate is 5% and the market risk premium is 9%. There is $1.18 billion in outstanding debt (face..
What is the best estimate of current stock price : Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 14.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estima..
What is the expected year-end free cash flow : Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow is expected to grow at a constant rate of 6.00% per year. What is the expected year-end free cash flow, FCF1 in millions?
What is the payback period for project : Christopher Electronics bought new machinery for $5,120,000 million. this is expected to result in additional cash flow of $1,230,000 million over the next 7 years. what is the payback period for this project? their acceptance period is five years.
Calculate the principal repaid in the first payment : You borrow X for four years at an annual effective interest rate of 8%, to be repaid with equal payments at the end of each year. The outstanding loan balance at the end of the third year is 559.12. Calculate the principal repaid in the first payment..
Considering purchase of new packaging machine : A toy manufacturer is considering purchase of a new packaging machine for $150,000. Annual labor savings are estimated to be $25,000 the first year and then increase 10% per year (geometric gradient). Routine maintenance will cost $2500 per year.
Identify every breakeven point for overall option strategy : Identify every breakeven point for the overall option strategy.
What other factors may influence the value of a bond : Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other f..
How can not for profit increase their social media presence : How can a not for profit increase their social media presence? A stock has an expected return of 0.11 and a variance of 0.20. what is its coefficient of variation? While interest rates have been historically low for the past 8 years, rates are expect..

Reviews

Write a Review

Financial Management Questions & Answers

  Save annually in before-tax franc interest expense

Suppose that the cost of borrowing restricted Swiss Francs is 7% annually, whereas the market rate for these funds is 12%. Suppose that a firm can borrow SF 10 million of restricted funds. How much will it save annually in before-tax Franc interest e..

  Shares of common stock outstanding at a price per share

Western United has 154,000 shares of common stock outstanding at a price per share of 38.50. There are 15,000 shares of preferred stock outstanding at a price of 69/share. The firm also holds 3600 bonds outstanding that are currently selling at par. ..

  Compare linear regression to the moving averages

Compare linear regression to the moving averages and smoothing techniques used in Week 1. Why is linear regression more appropriate for long-range forecasts?

  What is the future value of these investment cash flows

Trigen Corp. management will invest cash flows of $331,000, $616,450, $212,775, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 6.75 percent, what is the future value of th..

  Underlying assumption of the dividend growth model

Which one of the following is an underlying assumption of the dividend growth model?

  Makes interest payments on a semiannual basis

The Market price is $775 for a 9-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity?

  Coupon bonds on the market with ten years left to maturity

The Timberlake-Jackson Wardrobe Co. has 11.6 percent coupon bonds on the market with ten years left to maturity. The bonds make annual payments.

  What was the firm actual return

What is the expected return of a stock with a beta of 1.3, if the risk free rate is 4%, and the market risk premium is 7%? If over the course of the year the actual market return was 12%, and the firm’s employees went on strike causing a price drop o..

  Saving for new car

Charles Hess is saving for a new tractor. The cost is $75,000. How much must he invest at a 4% annual interest rate to have $75,000 in six years? Karen is saving for a new car. The car cost 22,000. How much must Karen invest in a savings account that..

  Growth rate of dividends per share expected by investors

Zeniba Inc.’s stock is currently selling for $23.56 per share. The company just paid a dividend = $2.00 per share (i.e., D0 = $2.00), and investors expect the dividend to grow at a constant rate out into the future. Investors require a minimum annual..

  Labor production rate for making

Estimate the direct cost of materials, equipment and labor for wood forms for a concrete foundation wall of a building whose outside dimensions are 46 ft. 6 in. wide, 88 ft. 0 in. long, 9 ft. 8 in. high, and 9 in. thick. Labor production rate for mak..

  Part of business is selling modems for network connection

Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. Ordering a shipment of modems costs about $500 in processing. A modem costs you $150 and holding a modem in inventory costs..

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