How much interest will you have paid over the life of loan

Assignment Help Finance Basics

Reference no: EM131928125

Question: a. You are considering taking out a loan to invest in a promising nanotechnology firm, which is designing miniaturized robots to repair micro-fractures in the shin bones of marathon runners. In exchange for one common share, the company is asking for an investment of $125,000. Your bank has offered you a loan of $125,000 at a quoted rate of 11.55%, compounded quarterly. The loan will be amortized over a 10-year term.

b. Assuming you hold the loan to maturity; how much interest will you have paid over the life of the loan?

Reference no: EM131928125

Questions Cloud

Prepare the reconciliation necessary to convert fund balance : Prepare the reconciliation necessary to convert from the fund balance reported in the governmental funds Balance Sheet to the net position in the government

Proportion of cohabiting parents : Test the claim that the proportion of single (never married) parents is different from the proportion of cohabiting parents.

Prepare a contribution format income statement for the year : Compute the unit product cost for one barbecue grill. Assume that the company use variable costing. Prepare a contribution format income statement for the year.

Confidence interval for the true proportion of all parents : Provide a 82% confidence interval for the true proportion of all parents in 1999 who believe children should be financially independent by age 23.

How much interest will you have paid over the life of loan : You are considering taking out a loan to invest in a promising nanotechnology firm, which is designing miniaturized robots to repair micro-fractures.

Determine the present value for the project in usd : Determine the present value for the project in USD by calculating the NPV in euros discounted at the euro equivalent cost of capital.

What is the maximum weight the elevator can support : What is the maximum weight the elevator can support (people and/or cargo) in order to be sure the cable will not fail with a certainty of 2.5%?

What is your best estimate of the future annual returns : Using Blume's formula, what is your best estimate of the future annual returns over 5 years? 11 years? 22 years? (Do not round intermediate calculations).

Determine the interest payment for the following : Determine the interest payment for the following three bonds: 2.5 percent coupon corporate bond 3.15 percent coupon Treasury note.

User Account

All Pages