What is the amount of annual payment for the debt

Assignment Help Finance Basics

Reference no: EM131959233

Question: Your company is taking the loan of $1,260,000 for a new business plan. The interest rate is set at 6%. The entire debt must be paid in 5 years in an annuity payment plan. The Present Value Interest Factor for an Annuity (PVIFA - at 6% interest rate for 5 years) is 4.2000. (This is a simplified index to make calculation easy.)

What is the amount of annual payment for this debt according to the given information? Do not put dollar sign ($) or a comma (,) in your answer. Put just numbers (for example, 1000 for $1,000).

Reference no: EM131959233

Questions Cloud

What might a large value for this ration imply : How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ration imply?

Prepare the journal entry to record the issuance : Assume the bonds are issued at 103 instead. Prepare the journal entry to record the issuance of the bonds.

Discuss the lower level of operating risk : If your company's ratio of NPW and deposits to capital increased by 20 percent next year (e.g. increased from 1.5 to 1.8) while the dollar value of capital.

Illustrates which type of international taxation is : This situation illustrates which type of international taxation? sales tax, indirect tax, value-added tax, direct tax, or corporate income tax

What is the amount of annual payment for the debt : What is the amount of annual payment for this debt according to the given information? Do not put dollar sign ($) or a comma (,) in your answer.

What was the issue price on january 1 : The bonds have a stated interest rate of 12 percent and pay interest on June 30 and December 31 each year.

Examining what is the company cost of equity : A company's common stock has a market price of $13 and a beta of 1.12. The return on U.S. Treasury bonds is 2.5% and the market risk premium is 6.8%.

What amount should stephen record as a debit to lease : Stephen was to receive annual year-end payments of $10,000 for ten years, after which there was a guaranteed residual value of $8,000.

Compute the yield associated with the investment for year : On January 1, Garrity Jones purchased 100 shares of Anchor Concrete's common stock for $80 per share.

User Account

All Pages