Compute the total amount he must pay

Assignment Help Financial Management
Reference no: EM131448444

“Bob Pearson borrowed $30,000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. Immediately after his 25th payment, Bob desires to pay the remainder of the loan in a single payment. Compute the total amount he must pay.”

Reference no: EM131448444

Questions Cloud

The average cost of repairing telephone system : The manager of a machine-parts distributor is about to buy an automated telephone ordering system. The manager estimates that each phone call handled by such a system will result in $1.00 more contribution than if the phone call is handled by a sales..
Primary disadvantage of the corporate form of organization : Firms raise capital by selling newly issued securities in the ___________markets, while existing, already outstanding securities are traded in the ______________markets. The primary disadvantage of the corporate form of organization is. In a dealer m..
Statistical inference focuses on drawing conclusions : Statistical inference focuses on drawing conclusions about populations from samples. Hypothesis testing is the fundamental statistical approach used that allows you to draw valid statistical conclusions about the value of population parameters.
Stocks perform better over long term than market averages : There is evidence that small stocks and value stocks perform better over the long term than the market averages. What are some logical reasons for this phenomenon?
Compute the total amount he must pay : “Bob Pearson borrowed $30,000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. Immediately after his 25th payment, Bob desires to pay the remainder of the loan in a s..
What is the effective annual rate on the loan : You’ve borrowed $3,538.87 and agreed to pay back the loan with monthly payments of $180. Assume the interest rate is 12% stated as an APR. How long will it take you to pay back the loan? What is the effective annual rate on the loan?
Suppose ford sold an issue of bonds with years maturity : “Suppose Ford sold an issue of bonds with a 15-year maturity, a $1000 per value, a 12% coupon rate, and annual interest payments. Today, the closing price of the bond is $786.20. What is the current yield?
What is the future value of your inheritance at retirement : You believe you will need to have saved $428,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $103,000 in 5 years. If the interest rate is 6% per year, what is the future value of your inheri..
Company conducts sensitivity analysis using variable cost : CC’s is analyzing a proposed project with anticipated sales of 3,620 units, give or take 5 percent at a sales price of $24, plus or minus 2 percent.. The variable cost per unit is $14.60, plus or minus 4 percent, and the fixed costs are $12,900, plus..

Reviews

Write a Review

Financial Management Questions & Answers

  Exchange rate effects on investing

Exchange Rate Effects on Investing. Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security

  What is the periodic interest rate

A loan with monthly compounding has an APR of 6%. What is the periodic interest rate? What is the APR of a 30-year, $300,000 mortgage with monthly payments of $2000? What is the effective annual rate of a savings account that pays an APR of 5% and co..

  What was the investor total holding period return

Two years ago an investor invested $27 thousand into a fund with a 4.9% front-end load, a 1.4% annual expense ratio, and a NAV of $34.07 per share. The securities in the fund increased by 11 percent each year, and then the investor sold the fund. Wha..

  What is cost of equity raised by selling new common stock

Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D0 = $1.25 P0 = $29.50 g = 5.00% (constant) and F = 6.00%. What is the cost of equity raised by selling new common stock?

  Provide after-tax operating cash inflows

what is the IRR(%) for the following project if its initial after tax cost is 5,000,000 and its is expected to provide after-tax operating cash inflows of 1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and 1,300,000 in year 4?

  Expected to have free cash flows

Flagstaff Enterprises is expected to have free cash flows in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of 13%, a debt cost of capital of 7%,..

  Substantially outperform bond investments

We have seen that over long periods stock investments have tended to substantially outperform bond investments. However, it is not at all uncommon to observe investors with long horizons holding their investments entirely in bonds. Are such investors..

  Assuming the treasury bond futures are perfect hedge

It is November of 2015 and you currently own $10 million 5.375% US Treasury Bonds that mature in 2030. The bonds currently trade at 121-5 and yield 3.52%. How many contracts do you buy? Assuming the Treasury bond futures are a perfect hedge, what hap..

  Which portfolio has the best diversification

Which portfolio has the best diversification?

  What is the hedge ratio of the put

Two-state put option value: S0=100, X=115; 1+r=1.10. The two possibilities for S(T) are 125 and 85. what is the hedge ratio of the put? given that the stock currently is selling at 100, compute the value of the put option.

  Research to develop new computer game

Your company has spent $210,000 on research to develop a new computer game. The firm is planning to spend $41,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $5,..

  What is the contract size of one futures contract

What is the contract size of one futures contract (in barrels per contract)? - How many futures contracts do you need to purchase to hedge your position?

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