What final payment will the bank require

Assignment Help Financial Management
Reference no: EM131575617

You have a loan outstanding. It requires making sixsix annual payments of $8,000 each at the end of the next six years. Your bank has offered to restructure the loan so that instead of making the six payments as originally? agreed, you will make only one final payment in six years. If the interest rate on the loan is 2%?, what final payment will the bank require you to make so that it is indifferent to the two forms of? payment? The final payment the bank will require you to make is ?$____. 

Reference no: EM131575617

Questions Cloud

Are benefits of further education worth associated? costs : Are the benefits of further education worth the associated? costs?
Adjustable-rate mortgage-what is monthly mortgage payment : A 30 year adjustable-rate mortgage (ARM) was taken with the initial terms: What is the monthly mortgage payment and how much would you owe after 60 payments?
What is the monthly mortgage payment : What is the monthly mortgage payment? How much do you owe after 5 years of payments?
Determine number of samples that must be tested each year : Determine the number of samples that must be tested each year in order to justify the complete lab.
What final payment will the bank require : what final payment will the bank require you to make so that it is indifferent to the two forms of? payment?
What is the formula for the expected return of portfolio : What is the formula for Expected Return of a Single Stock? What is the formula for the Expected Return of a Portfolio?
Directly related with both balance sheet-income statement : describe how they can be directly related with both balance sheet and income statement.
Find the terminal stock price using benchmark pe ratio : find the “terminal” stock price using a benchmark PE ratio. What is the target stock price in five years? What is the stock price today?
What is dividend growth rate : The company just paid an annual dividend of $1.04 per share. What is the dividend growth rate?

Reviews

Write a Review

Financial Management Questions & Answers

  Define non-guideline or non-tax-oriented lease

What are lease agreements often categorized as? Briefly describe each. The IRS has specific guidelines that apply to lease arrangements. Define guideline lease or tax-oriented lease. Define non-guideline or non-tax-oriented lease.

  What about the worst-case scenario

What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario?

  Considering extending trade credit

Kevin’s Wholesale is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $350,000 if credit is extended to these new customers. Of the new accounts receivable generated, 15 % will be uncollec..

  Additional notes payable and use them to increase inventory

The Nelson Company has $1,000,000 in current assets and $400,000 in current liabilities. Its initial inventory level is $200,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term..

  Compute the future value and interest rate

Compute the future value and Interest Rate

  What was the average real return on crash-n-burn’s stock

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14 percent, –7 percent, 17 percent, 15 percent, and 10 percent. Suppose the average inflation rate over this period was 1.4 percent and the average T-bil..

  European call futures option when the futures price

Calculate the value of a 6-month European call futures option when the futures price is $21,

  What is your rate of return on this investment

what is your rate of return on this investment? Answer to 4 decimal places, for example 0.1745.

  What is the amount of the firms ebit

Advantage First Corporation has sales of $4497277; income tax of $324748; selling, general, and administrative expenses of $275122; depreciation of $303941; cost of goods sold of $2812586; and interest expense of $161713. What is the amount of the fi..

  Uncertain about our cost of capital

Alpha is considering projects A and B with cost of capital 6%.They are mutually exclusive. which project is better ? ) we are uncertain about our cost of capital. For what range of possible k's would we choose each project. explain?

  The firms assets and liabilities at given point in time

The firm's assets and liabilities at a given point in time are reported on the firm's:

  Undertake and is expected to produce annual inflows

Estate development project that will cost $5 million to undertake and is expected to produce annual inflows.

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