Determining the revised level payment

Assignment Help Financial Management
Reference no: EM13969720

A $20,000 loan with interest at 3.5% is being repaid by 35 level annual payments, the firs one due one year hence. Beginning with the 17th payment, the borrower is permitted to pay one-third the normal annual payment. After the 12th reduced payment, the loan is renegotiated. The revised level payment P will yield the lender 4% per year over the remaining 7 years. Find P.

Reference no: EM13969720

Questions Cloud

Level annual installments : A $20,000 4% loan is to be repaid in n level annual installments, commencing one year after the date of the loan. The amount of principal included in the 4th installment is $450. In which of the following rangers is the amount of the installment?
What, according to lorenz, is potential of pompeian painting : What is the author's thesis statement and where is it located in the text? How do Mythological image pose a special case for visual analysis?
Factors that must be considered when interviewing victims : A summary of the information and story told to you by both individuals Any issues that arose in both interviews. Explain how those issues affected the quality of the information you received. Factors that must be considered when interviewing victims ..
Write a paper on america criminal justice system : Write a paper that focus on the racial disparity within America criminal justice system. This should include the fair sentencing act, the public's perception of who commits crime, war on drugs, etc
Determining the revised level payment : After the 12th reduced payment, the loan is renegotiated. The revised level payment P will yield the lender 4% per year over the remaining 7 years. Find P.
Write an essay paper on exhausted life : Write an essay paper on Exhausted life.
Firm 2012 operating cash flow : What was the firm's 2012 operating cash flow, or OCF?
Explain current best practices for assessing and managing : Compare the best practices presented in the WHI study to the current best practices presented in the article. Explain how the differences in best practices might impact women's health.
What are the advantages or disadvantages of the new methods : How does a green burial differ from the kind described in "Behind the Formaldehyde Curtain"? What are the advantages or disadvantages of the new methods?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the length of the firms cash conversion cycle

Negus Enterprises has an inventory conversion period of 73 days, an average collection period of 43 days, and a payables deferral period of 35 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm's cash conversion cycl..

  The objectivespurpose of the research paper project are to

the objectivespurpose of the research paper project are to enable you to do a comprehensive financial analysis of a

  Firm faces an average tax rate

Suppose that B2B, Inc., has a capital structure of 36 percent equity, 16 percent preferred stock, and 48 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 15.0 percent, 12.0 percent, and 10.0 percent, respec..

  What is the growth rate of the dividends

Alexis owns stock in a company which has consistently paid a growing dividend over the last 10 years. The first year Alexis owned the stock, she received $4.50 per share and in the 10th year, she received $4.92 per share. What is the growth rate of t..

  What is the discounted payback period

An investment project costs $10,500 and has annual cash flows of $6,500 for 2 years. If the discount rate is 13 percent, what is the discounted payback period?

  What is the banks cost of preferred stock

Holdup Bank has an issue of preferred stock with a $6.05 stated dividend that just sold for $97 per share. What is the bank’s cost of preferred stock?

  Included in the initial outlay

Which of the following should be included in the initial outlay?

  Revenues and costs are after tax

You can invest in a machine that costs $500,000. You can expect revenues net of any expense, except machine costs, of $150,000 at the end of each year for five years. You will subcontract the maintenance costs at a rate of $20,000 a year, to be paid ..

  What factors affect future movements in value of the euro

Factors affecting exchange rates. What factors affect the future movements in the value of the euro against the dollar?

  What is the current market value of the stock

Test Sales, Inc. (TSI) just paid a common stock dividend of $2.50 per share. Its sales are expected to grow at a rate of 20% for the years 1 to 3, at 16% for years 4 and 5, and at 6% per year indefinitely thereafter. Dividend growth is expected to ma..

  What must be the forecasted inflation rate in year

Suppose the real risk-free rate currently is 3% and a maturity risk premium of 0.15% per year to maturity applies, i.e., MRP=0.15%*t, where t is the years to maturity. The averaged expected inflation rate over the next following 3 years is 2.5%. If t..

  Executive roles of management-planning-organizing-leading

How does the concept of the time value of money affect decisions made across the four executive roles of management -- planning, organizing, leading, and controlling? Why is this concept important for the contemporary executive to understand?

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