The loan off in equal monthly payments over five years

Assignment Help Financial Management
Reference no: EM131354399

You need to borrow $23,000 to buy a truck. The current loan rate is 7.8% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is your monthly payment? ( round to the nearest cent) a)$383.33 b) $464.16 c) $477.51 d) $1,814.02 e) None of the above

Reference no: EM131354399

Questions Cloud

Calculate the convexity of the bond : Microsoft has a bond outstanding (symbol: MSFT.GB) with a 4.20% coupon rate and a yield to maturity (continuously compounded) of 1.535%. The bond expires in June, 2019, and pays interest semi-annually. Estimate the current price of the bond. Calculat..
Directly shorten the cash conversion cycle : Which of the following actions would MOST directly shorten the cash conversion cycle? A supplier offers a firm a 3/15, net 30 discount for early payment on a $2,000 bill. What is the cost of forgoing the trade discount, assuming the financial year ha..
Present value of both annuities are equal : An annuity pays 2 at the end of each year for 18 years. Another annuity pays 3 at the end of each year for 9 years. At an effective annual interest rate i, 0
Using call and put options with a strike price : You establish a straddle on Firm G using call and put options with a strike price of $87. The call premium is $9.5 and the put premium is $13. What are the breakeven prices?
The loan off in equal monthly payments over five years : You need to borrow $23,000 to buy a truck. The current loan rate is 7.8% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is your monthly payment?
Market risk premium-reward-to-risk ratios for stocks : Stock Y has a beta of 1.4 and an expected return of 14.7 percent. Stock Z has a beta of .7 and an expected return of 8.7 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.2 percent, the reward-to-risk ratios for stocks Y ..
Activities is source of cash : Which one of the following activities is a source of cash?
What is roe for the proposed capital structure : Cartwright Communications is considering making a change to its capital structure to reduce its cost of capital and increase firm value. Right now, Cartwright has no debt in its but plans to borrow $6 million with interest rate of 8%. What is ROE for..
What is expected return on portfolio : You own a portfolio that is 34 percent invested in Stock X, 24 percent in Stock Y, and 42 percent in Stock Z. The expected returns on these three stocks are 7 percent, 20 percent, and 16 percent, respectively. What is the expected return on the portf..

Reviews

Write a Review

Financial Management Questions & Answers

  Outlay for the machine for capital budgeting purposes

You must evaluate a proposal to buy a new milling machine. The base price is $191,000, and shipping and installation costs would add another $13,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $95,500. What ..

  Coupon bonds on the market with nine years

Bond Yields: The Timberlake-Jackson Wardrobe Co. has 8 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $1,047.50, what is its YTM?

  The second account earns interest at force of interest

Lily has two bank accounts. Suppose that the first account earns interest at a nominal discount rate of d^(2), convertible semiannually. The second account earns interest at a force of interest δ. After 6.75 years, the value in each account is $250. ..

  Security with the cash flows

You own a security with the cash flows shown below. 0 1 2 3 4 0 610 385 240 320 If you require an annual return of 12%, what is the present value of this cash flow stream? Round your answer to the nearest cent. Do not round intermediate calculations.

  What is value of firm-debt with both a book and face value

The Montana Hills Co. has expected earnings before interest and taxes of $8,100, an unlevered cost of capital of 11%, and debt with both a book and face value of $12,000. The debt has an annual 8% coupon. The tax rate is 34%. What is the value of the..

  How much money would have accrued when he turned

As a savings plan to ensure your child's college education, a couple decides to deposit $ 100 a month into a bank account that pays interest at a rate of 6% per year compounded monthly. If the savings plan started when the child was 6 years old, how ..

  Accounting fundamentals for health care management

What is the purpose of an audit preformed by a CPA? Do audits signify to fin financial statement users that no fraud and embezzlement occurred at the organanization? How does a sampling financial transaction help an auditor identify accounting errors..

  Income statement preparation-evaluate financial performance

Income Statement Preparation: On December 30,2015, Cathey Chen, a self employed CPA, completed her first full year in business. During the year, she billed $360000 for her accounting services. She had two employees, a bookkeeper and a clerical assist..

  What is the estimated OCF for this project

Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $5,600,000 investment in threading equipment to get the project started; the project will last for six years.  You re..

  Stock investment refers to borrowing part of purchase price

Margin on a stock investment refers to borrowing part of the purchase price. Would you want to do this? Why or why not? In your answer, make sure you discuss how investing on margin affects the potential risk and return on the investment.

  Percentage change in operating cash flow be

At an output level of 84,000 units, you calculate that the degree of operating leverage is 1.8. The output rises to 91,000 units. What will the percentage change in operating cash flow be?

  Assignment-financial management

Assignment: Financial Management, Each day there is speculation in the news about what could happen to Greece and its economy. Your assignment is to research the Greek crisis and draw your own conclusions on what the outcome will be for survival. ..

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