User Account

All Pages

What annual percentage rate is being charged on the loan

Assignment Help Financial Management
Reference no: EM131913033

An Auntie Anne's franchise financed a $68,000 pretzel oven with a 61% add-on interest installment loan for 48 months. The loan required a 20% down payment.

a. What is the finance charge on the loan?

b. What are the monthly payments?

c. What annual percentage rate is being charged on the loan?

d. If the company decides to pay off the loan after 22 months, what is the loan payoff?

Reference no: EM131913033

Questions Cloud

Compute the irr for this project : . How many IRRs are there? If you apply the IRR decision rule, should you accept the project or not? What' going on here?
Determine the sample size needed : Suppose you want to estimate, with 95% confidence, the population mean force required to break an insulator to within +/- 25 pounds. On the basis
Determining the population with mean : Find the probability sample will be between 8 and 14. (b) find the 15th percentiles.
Compute what is the total amount invested by all stockholder : On May 15, Helena Carpet Inc., a carpet wholesaler issued. Compute what is the total amount invested (total paid-in capital) by all stockholders as of June 30?
What annual percentage rate is being charged on the loan : An Auntie Anne's franchise financed a $68,000 pretzel oven with a 61% add-on interest installment loan for 48 months. The loan required a 20% down payment.
How a certain macroeconomic policy was formulated : If policy outcomes are not yet clear, it is fine to focus on how a certain macroeconomic policy was formulated through the interaction of different political.
Sampling design and data collection tool : Please indicate the sampling design and data collection tool(s) used in the following studies.
Discuss about the ethnicity in brief : Ethnicity is sometimes thought of as an extension of kinship... in the same way we are related to our extended families, we are "related" to others who share.
Describe some sensitivities you might run on npv analysis : The Mayo Corporation estimates that it can save $30,000 a year in cash-operating costs. Briefly describe some sensitivities you might run on NPV analysis above.

Reviews

Write a Review

Financial Management Questions & Answers

  Factors that affect the corporate cost of capital

The Board Chair is concerned about factors that affect the corporate cost of capital for any business: the level of interest rates, tax rates, capital structure policy, and capital investment policy. Does the tax rate, cost of debt, or cost of equity..

  Between stockholders wealth and financial decisions

Apple Dividend Discount Model and justify why you think that the stock is currently undervalued, overvalued, or fully valued. Please be sure to state your assumptions and justify your results. What is the relationship, if any, between stockholders’ w..

  What is the present value of the perpetuity

Suppose Auburn plans to pay Coach Malzahn perpetuity if he wins a National Championship this season. The payment will be $37,000 each year for the rest of his life. Assume a 6% real interest rate. What is the present value of the perpetuity?

  Severe financial crises have most often been caused by

Throughout history, severe financial crises have most often been caused by:

  What is the companys cost of equity

Chandeliers Corp. has no debt but can borrow at 6.3 percent. The firm’s WACC is currently 8.1 percent, and the tax rate is 35 percent. What is the company’s cost of equity? If the firm converts to 50 percent debt, what will its cost of equity be?

  Is the inherently discriminatory nature of underwriting

After hearing the advice that it is usually best to buy life insurance from a person who has been in the business at least five years, a life insurance company general agent became upset and said rather vehemently, “How do you think we could recruit ..

  Prepare journal entry for all the transactions

Sykes Company for the year ended December 13,2014. The company sold merchandise and made collections on credit terms 2/10, n/30 (assume a unit sales price of $500 in all transactions and use the gross method to record sales revenue). Prepare Journal ..

  What is it worth of the european call option

You own a one-year call option to buy one acre of Los Angeles real estate. The exercise price is $2.12 million, and the current, appraised market value of the land is $1.82 million. You have a European call option. What is it worth of the European ca..

  What is its enterprise? value

Victoria Enterprises expects earnings before interest and taxes ?(EBIT?) next year of $2.4 million. Its depreciation and capital expenditures will both be $297,000?, and it expects its capital expenditures to always equal its depreciation. Its workin..

  What do you think would make you a better investor

Do you agree with what the author says about being a better investor? Why or why not - What do you think would make you a better investor

  Computing bond price on a non-coupon date

Consider bond paying coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. Find the bond's price today.

  What is the reward-to-volatility ratio for the equity fund

You manage an equity fund with an expected risk premium of 11% and a standard deviation of 24%. The rate on Treasury bills is 6.2%. Your client chooses to invest $80,000 of her portfolio in your equity fund and $20,000 in a T-bill money market fund. ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd