How much is the loan payment if payments are scheduled

Assignment Help Financial Accounting

Reference no: EM132544646

Casino.com Corporation is building a $25 million office building in Las Vegas and is financing the construction at an 80 % loan-to-value ratio, where the loan is in the amount of $20,000,000. This loan has a ten-year maturity, calls for monthly payments, and is contracted at an interest rate of 8%.

Using the above information, answer the following questions.

Question 1: What is the monthly payment?

Question 2: How much of the first payment is interest?

Question 3: How much of the first payment is principal?

Question 4: How much will Casino.com Corporation owe on this loan after making monthly payments for three years (the amount owed immediately after the thirty-sixth payment)?

Question 5: Should this loan be refinanced after three years with a new seven-year 7 percent loan, if the cost to refinance is $250,000? To make this decision, calculate the new loan payments and then the present value of the difference in the loan payments.

Question 6: Returning to the original ten-year 8 percent loan, how much is the loan payment if these payments are scheduled for quarterly rather than monthly payments?

Question 7: For this loan with quarterly payments, how much will Casino.com Corporation owe on this loan after making quarterly payments for three years (the amount owed immediately after the twelfth payment)?

Question 8: What is the annual percentage rate on the original ten-year 8 % loan?

Question 9: What is the effective annual rate (EAR) on the original ten-year 8 % loan?

Reference no: EM132544646

Questions Cloud

Identify the needs of internal and external stakeholders : Imagine that you are a candidate for a position as a healthcare leader, and you have been asked to provide the board of directors with information regarding.

How to pay bills electronically : What recommendations do you have regarding if/when/how to pay bills electronically? Smart Phones are simply small computers

what is her tax basis in the LLC interest : If Connie receives a 5 percent capital interest only, how much income must she report and what is her tax basis in the LLC interest

Is amazon getting too big : Is amazon getting too big? Is this good or bad? Who should be worried: consumers, government, competitors, everyone, or no one?

How much is the loan payment if payments are scheduled : Returning to the original ten-year 8 percent loan, how much is the loan payment if these payments are scheduled for quarterly rather than monthly payments?

Prepare liability section of technical correct balance sheet : Prepare the liability section of Technical Corrects balance sheet at March 31, 2018. Show the appropriate financial statement presentation for all liabilities

Signature assignment-organizational analysis : Managers at each level of organization use a type of SWOT analysis to identify strategies that will best position the company to achieve its mission and goals

What about renaissance culture aids us : Remember that iconology should be relevant to your analysis. What about Renaissance culture aids us in a deeper understanding of the work?

What is the price variance for direct labour : The entity allocates fixed overhead costs at a standard rate of $19 per direct labour hour. What is the price variance for direct labour

User Account

All Pages