Loan amortization-what will be the monthly loan payment

Assignment Help Financial Management
Reference no: EM13894699

Loan amortization and EAR

You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 6% with interest paid monthly.

What will be the monthly loan payment? Round your answer to the nearest cent.

$:

What will be the loan's EAR? Round your answer to two decimal places.

%:

Reference no: EM13894699

Questions Cloud

How deafness might affect a child acquisition : Think about the difficulties of making friends or learning to read without sight or hearing. Describe how deafness might affect a child's acquisition and use of speech and language, academic achievement, and social functioning. Discuss how blindness..
What is the epeat tool? how is it used : What is the EPEAT tool? How is it used?
What is the bond equivalent yield : A Treasury bill purchased in December 2015 has 115 days until maturity and a bank discount yield of 2.43 percent. Assume a $100 face value.  What is the bond equivalent yield?
What is the tcf associated with the purchase of machine : Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five year life. At the end of five years it is believed that the machine could be sold for $15,000. The..
Loan amortization-what will be the monthly loan payment : You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 6% with interest paid monthly. What will be the monthly loan payment?
What is the amount of the cash flow to creditors : At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is $269 and total debt is $349. The interest paid is $35. What is the amount of the cash flow to creditors?
What can you do to repair the damage : Define the term irreparable. If, in a moment of frustration and anger, you tell someone that he or she is stupid, what can you do to repair the damage?
Identify as many economies of scale as you can : 1.Taking the same industries, identify as many economies of scale as you can.
Value bond outstanding with coupon rate : Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 23 years to maturity. The yield to maturity on this bond is 4.3 percent. What is the price of the bond?

Reviews

Write a Review

Financial Management Questions & Answers

  Balance is immaterial-confirmations are deemed ineffective

Audit standards indicate that there is a presumption that auditors will confirm accounts receivable unless the balance is immaterial, confirmations are deemed ineffective, or the auditors' assessment of risk is low and other procedures will achieve t..

  Calculate the two projects npvs

Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine 190-3, which has a cost of $220,000, a 3-year expected life, and after-tax cash flows (labor savings and depre..

  Calculate patient revenue on accrual basis

Calculate patient revenue on accrual basis for the coming year. Subdivide revenue by program, and within each program subdivide it by type of payer.

  Assume the dividend tax rate is zero

The firm you are CEO if has a current period cash flow of 1.0 million and pays no dividend. The present value of the company’s future cash flows is $2.5 million. The company is entirely financed with equity and there are 500,000 shares outstanding. A..

  How much money will you have at the end of one year

Assume you just deposited $1,000 into a bank account. The current real interest rate is 3?%, and inflation is expected to be 6?% over the next year. What nominal rate would you require from the bank over the next?year? How much money will you have at..

  Two tax topics in mergers and acquisitions

Choose two tax topics in mergers and acquisitions that can put a stop to a deal in a moment’s notice, describe each, and provide how you would prevent them.

  What is the firms tax liability

Last year, California Sushi and Such (CSS) had sales of $65 million. The firm's operating expenses amounted to $20 million and costs of goods sold totalled $15 million. In addition, CSS received $80,000 in dividend income, and paid $300,000 in divide..

  What was deltas payout ratio for fiscal year

Delta Corporation earned $2.50 per share during fiscal year 2011 and paid cash dividends of 1.00 per share. During the fiscal year that just ended on December 31, 2012, Delta earned $3.00 per share, and the firm’s managers expect to earn this amount ..

  Cost of retained earnings-cost of new outside equity capital

Discuss the following statement: “The cost of retained earnings is less than the cost of new outside equity capital. Consequently, it is totally irrational for a firm to sell a new issue of stock and to pay dividends during the same year.”

  Why is marketing an function in a market based economy

Discuss why is marketing an function in a market based economy.

  Measure the performance of your investment in fund

If you desire to forecast performance for next year the best forecast will be given by the____. If you want to measure the performance of your investment in a fund, including the timeing of your purchases and redemptions, you should use the _____.

  What is the future value of his investment cash flows

Larry James is planning to invest $25,200 today in a mutual fund that will provide a return of 0.09 each year. What will be the value of the investment in 10 years - what is the future value of his investment cash flows.

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