Find the monthly payment needed to pay off a loan

Assignment Help Financial Management

Reference no: EM131976289

1. The Grand Prize in a State Lottery is $500000, which will be paid in 20 equal annual payments of $25000 each. The State makes the first payment right away. How much does the State need to deposit in an account paying 6% compounded annually to be able to make the remaining 19 equal payments of $25000 each?

2. Find the monthly payment needed to pay off a loan of $2100 amortized at 5% compounded monthly for 5 years.

3. Jessica owes $2550 on a credit card that charges 1.7% effective interest per month. She decides to pay off the debt by making monthly payments of $70, starting one month from now, followed by a final smaller payment. How many payments, including the final one, will be required?

Reference no: EM131976289

Questions Cloud

Create a new small suv in the line : Create a positioning statement that captures the essence of the brand.Create a name for your car using information in the article.

Amount of american assets bought by foreigners : Suppose that Americans buy more foreign assets than the amount of American assets bought by foreigners. Then which of the following is true?

Write an essay about the book lies my teacher told me : Write an essay in a perspective from the book Lies my teacher told me. What is history? Slavery and race. Modern slavery. The clash of culture.

Prepare a two-year plan to build functional expertise : There are many ways to build functional expertise within an organization. Select one of the key roles in building functional expertise.

Find the monthly payment needed to pay off a loan : Find the monthly payment needed to pay off a loan of $2100 amortized at 5% compounded monthly for 5 years.

Difference between being dairy farmer and milk producer : What's the difference between being a dairy farmer and milk producer?

Difference between being a dairy farmer and milk producer : The dairy industry in New Zealand uses a co-operative structure in which individual dairy farmers deliver its milk to a centralized firm who processes milk

What is annual time-weighted rate of return : What is Wendel's annual time-weighted rate of return?

Evaluate the role of decision making by health care leader : Evaluate the role of decision making by the health care leader for any of the performance standard measures to achieve national benchmarks.

User Account

All Pages