Neighbor has gotten into some serious credit card debt

Assignment Help Financial Management
Reference no: EM131025492

Your neighbor has gotten into some serious credit card debt, and currently owes $19,657 with an interest rate of 16% APR. Making the minimum payment of $403 per month, how long will it take to pay off this loan?

Enter answer in months, to two decimal places.

Reference no: EM131025492

Questions Cloud

Explain efficient market hypothesis and its three forms : Describe the organization of the statement of cash flows. And how do you compute net income? What is the realization principle, and why may it lead to a difference in the timing of when revenues are recognized on the books and cash is collected? Expl..
What is the share price of your firm : The firm you are CEO if has a current period cash flow of 2.1 million and pays no dividend. The present value of the company’s future cash flows is $17.5 million. The company is entirely financed with equity and there are 500,000 shares outstanding. ..
Liquidity theory holds : In your own words, explain: (i.) The primary difference between the expectations theory of the term structure and the liquidity theory of the term structure, and (ii.) Why forward rates are biased predictors of future short rates if the liquidity the..
Dividends are expected to increase at a constant growth rate : Jane’s sister-in-law, a stockbroker at Invest, Inc., is trying to get Jane to buy stock of HealthWest, a regional HMO. The stock has a current market price of $25, its last dividend was $2.00, and the company’s earnings and dividends are expected to ..
Neighbor has gotten into some serious credit card debt : Your neighbor has gotten into some serious credit card debt, and currently owes $19,657 with an interest rate of 16% APR. Making the minimum payment of $403 per month, how long will it take to pay off this loan?
Major differences between the two different initiatives : What are the major differences between corporate cause promotion and cause-related marketing? Explain the major differences between the two different initiatives.
How many years will pass before you get to retire : You are not thrilled about spending your entire life working. So, you have decided that you will save $5 thousand a year, starting at the end of this year, and retire as soon as you can accumulate $1 million. If you can earn an average of 7.64 percen..
Make in order to partake of future cybernetic goodness : You estimate that you will need $669 thousand in 30 years to buy some cybernetic body enhancements, including infrared vision, retractable claws, and expanded brain storage capacity. The first deposit will be made right now, the second 10 years from ..
Discount rate on this investment : You are being offered an investment that will pay you (and your heirs) $13,893 per year forever, starting 18 years from now. If your discount rate on this investment is 8.1 percent, how much would you be willing to pay for it today?

Reviews

Write a Review

Financial Management Questions & Answers

  Same effective annual rate as the quarterly payment bonds

The U.S. Delay Corporation, a subsidiary of the Postal Service, must decide whether to issue zero coupon bonds or quarterly payment bonds to fund construction of new facilities. The 1,000 par value quarterly payment bonds would sell at $795.54, have ..

  Explain what maximizing shareholder wealth is all about

Reflect upon your experiences and the concepts studied throughout the course. In your own words, explain what maximizing shareholder wealth is all about. What is or was the most difficult concept to grasp throughout the course? What are some tips you..

  Retirement account plan

Starting next month, if you make monthly deposits of $436 into a retirement account that earns 4% interest compounded monthly, how large will your retirement account be in 29 years? (Do not include the dollar sign ($). Enter rounded answer as directe..

  What is the after tax cost of capital to walgreen for bonds

The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value bonds with a 15 year maturity at a price of $951 that carries a coupon interest rate of 13.8 percent that ..

  Despite its promising technology

Neptune Biometrics, despite its promising technology, is having difficulty generating profits. Having raised $85 million in an initial public offering of its stock early in the year, the company is poised to intro- duce a new product, an inexpensive ..

  Calculate the after-tax cost of debt

Calculate the after-tax cost of debt under each of the following conditions: Interest rate of 13%; tax rate of 0%. Round your answer to two decimal places. Interest rate of 13%; tax rate of 15%. Round your answer to two decimal places.

  Discuss the difference between cash flow and profit

List and describe the four major financial statements.

  Evaluating proposed expansion-incremental free cash flow

Mersey Chemicals manufactures polypropylene that it ships to its customers via tank car. Currently, it plans to add two additional tank cars to its fleet four years from now. When evaluating the proposed expansion, what incremental free cash flows sh..

  What is the current market price of the bonds

Callaghan Motors' bonds have 10 years remaining to maturity. The coupon rate is 8% and the bonds have a yield to maturity of 9%. What is the current market price of the bonds?

  Before taxes per year in order processing costs

Your firm is contemplating the purchase of a new $560,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $56,000 at the end of that time. You will save $280,000 before..

  Determine target weighted average cost of capital

Felicia & Fred’s executive board have asked you to complete a decision model for their intended refurbishment of the former mill building. In order to make an appropriate decision, Determine the target weighted average cost of capital for Felicia & F..

  How the impact of inflation on the expected net cash flows

Explain what is meant by the net present value of an investment and discuss how the use of the NPV as an investment decision rule is related to the objectives of the company - Discuss the advantages and disadvantages of the use of the internal rate..

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