The payments are made monthly

Assignment Help Financial Management
Reference no: EM13849355

You take out a 4 year car loan for $18,000. The loan has a 4% annual interest rate. The payments are made monthly. What are the monthly payments? Show your work.

Reference no: EM13849355

Questions Cloud

What is the future value-assume annual compounding : What is the future value of $1,200 a year at the end of each year for 40 years at 8 percent interest? Assume annual compounding.
Working in business to learn the ropes : You have a two children, A and B. Child A is not going to college but is working in a business to learn the ropes. Child A plans on opening a business someday. Child B is attending college. You put a certain amount of money into an account.
Amortization with equal payments : Amortization with Equal Payments- Prepare an amortization schedule for a five-year loan of $67,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. How much interest paid in the third year? How much total intere..
How much needs to be deposited to set up the annuity : A grandfather sets up a trust for his only grandchild. The trust consists of an annuity that will pay $5,000 monthly to the grandchild for 18 years. The annuity pays an annual return of 5% and makes the payments monthly at the end of the month. The a..
The payments are made monthly : You take out a 4 year car loan for $18,000. The loan has a 4% annual interest rate. The payments are made monthly. What are the monthly payments?
Treasury bond-default risk premium and liquidity premium : A 5-year Treasury bond has a 4.05% yield. A 10-year Treasury bond yields 6.15%, and a 10-year corporate bond yields 9.35%. The market expects that inflation will average 2.1% over the next 10 years (IP10 = 2.1%). A 5-year corporate bond has the same ..
Real risk-free rate-what is its default risk premium : The real risk-free rate, r*, is 2.1%. Inflation is expected to average 3.2% a year for the next 4 years, after which time inflation is expected to average 4.05% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yie..
Invest today to receive : How much would you have to invest today to receive?
What is the present value of the payments : Calculating Annuities Due- Suppose you are going to receive $15,800 per year for five years. The appropriate interest rate is 7.9 percent. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present v..

Reviews

Write a Review

Financial Management Questions & Answers

  Generate no internal equity for the foreseeable future

Southern Alliance Company needs to raise $21 million to start a new project. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent common stock, 11 percent preferred stock, a..

  What is its weighted average cost of capital

A company has 100 million shares outstanding trading for $8 per share. It also has $900 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 12%, and its effective corporate tax rate is 40%, what is its w..

  What similarities exist between experiences-financial crises

What similarities exist between experiences in the United States and Ireland during the 2007-2009 financial crises

  Review current aasb framework

Review current AASB framework which is also known as "Framework for the Preparation and Presentation of Financial Statements" and provide a critical analysis of different measurement bases.

  What is the expected rate of return on your portfolio

Stock A has a beta of 1.50 and a standard deviation of return of 35%. Stock B has a beta of 3.25 and a standard deviation of return of 60%. Assume that you form a portfolio that is 40% invested in Stock A and 60% invested in Stock B. Using the inform..

  How a firm determine its optimal capital structure

How a firm determine its optimal capital structure. Explain how they do it. Why might optimal capital structure differ across industries? Explain.

  What is the pre-tax cost of debt if the tax rate

A firm has a debt issue outstanding with 7 years to maturity that is quoted at 108% of face value. The issue makes semi-annual payments and has an embedded cost of 6.1% annually. What is the pre-tax cost of debt if the tax rate is 38%? What is the af..

  What is swimkidss margin of safety

Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $71,100. Swimkids expects sales of $288,700 next year. What is Swimkids's margin of safety?

  Q1 an s corporation is subject to the following taxa

q1. an s corporation is subject to the following tax.a. corporate income tax. b. built-in gains tax. c. accumulated

  What are weightings of the two assets in the portfolio

A portfolio consists of two assets, Stock A and the risk -free asset (T-bills). Stock A has a beta of 1.2 and an expected return of 14%. The risk-free asset currently earns 4%. If the portfolio of the two assets has a beta of 0.8, what are the weight..

  What is marys current min monthly payment

Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRS:

  Compare and contrast a defined benefit and a defined

What are the time dimensions of the income statement, the balance sheet, and the statement of cash flows?  Hint: Are they videos or still pictures?  Explain.

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