Compute the annual amount of the instalment loan payment

Assignment Help Financial Management

Reference no: EM13728745

The company you work for is planning to borrow $58000 at an effective interest rate of 15% per year. The company expects to repay the loan with six equal annual payments at the end of each year, beginning one year after the loan is received.

1. Compute the annual amount of the instalment loan payment.

2. Determine the amount of interest that would be charged in the first year.

3. Determine the amount of interest that would be charged in the second year.

Reference no: EM13728745

Questions Cloud

Define and describe the field of epidemiology : Define and describe the field of Epidemiology (1/2 page)Define and explain epidemiologic transition and describe the factors involved in epidemiologic transition Say we suspect a relationship between a specific dietary factor and heart disease. Can y..

Calculate your total profit from triangular arbitrage : You observe the following three exchange rates at which you can buy or sell (borrow or lend). Calculate your total profit from triangular arbitrage, reporting your total profit in $ (by first calculating the profit in British pounds and then converti..

Systematic risk increases-factors remaining constant : IBM’s stock is currently selling at $ 11.44. This year the firm had earnings per share of $2.80 and the current dividend is $ 0.68. Earnings are expected to grow 7% a year in the foreseeable future. The risk free rate is 10 percent and the expected m..

Calculate the equivalent uniform annual worth of the machine : A machine costs $73,000 initially and will have a salvage value of $10,000 after 9 years. It will also have an operating cost of $21,000 in year 1, with 5% continuing increases each year thereafter to year 9. The MARR is 19% per year. Compute the Equ..

Compute the annual amount of the instalment loan payment : The company you work for is planning to borrow $58000 at an effective interest rate of 15% per year. The company expects to repay the loan with six equal annual payments at the end of each year, beginning one year after the loan is received. Compute ..

Analyzing cost data discovered that the information : An engineer analyzing cost data discovered that the information for the first three years was missing. However, she knows that the cost in year four was $1250 and the cost continued to increase by 5% per year thereafter.

Maintenance costs for a regenerative thermal oxidizer : Maintenance costs for a regenerative thermal oxidizer have haven increasingly uniformly for 5 years. The cost in year 1 was $8,000 and it increased by $900 per year through year 5. Compute the present worth of the costs using an interest rate of 10% ..

The half-life of aspirin in the bloodstream is 12 hours : The half-life of aspirin in the bloodstream is 12 hours. How long will it take for the aspirin to decay to 70% of the original dosage?

Result of depositing a fixed instalment amount : What factor would you use to determine the future lump sum amount that could be withdrawn from a bank as a result of depositing a fixed instalment amount for "n" years? State its name and show its standard notation.

User Account

All Pages