What is the amount of each payment

Assignment Help Finance Basics

Reference no: EM131934153

Question: Ashea is a 22 year old senior who used the Stafford loan program to borrow $4,000 four years ago when interest rates were 4.06% per year. $5,000 was borrowed three years ago at 3.42%. Two years ago she borrowed $6,000 at S.23%, and last year $7,000 was borrowed at 6.03% per year. Now she would like to consolidate her debt into a single 20 year loan with a 5% fixed annual interest rate. If Ashea makes annual payments (starting in one year) to repay her total debt, what is the amount of each payment?

Reference no: EM131934153

Questions Cloud

Identify at least three possible risks : Risk identification and mitigation methods: identify at least 3 possible risks and how to reduce the impact of them.

Find the terminal cash flows in year three : You have been asked by the president of your company to evaluate a proposed acquisition of equipment that will cost $120,000, with another $30,000.

What you have learned about the ehr : Summarize the news story and explain how it relates to what you have learned about the EHR in class so far (4-5 paragraphs).

When determining its initial investment outlay : Which of the following would be considered a relevant cash flow that should be included when determining its initial investment outlay?

What is the amount of each payment : Ashea is a 22 year old senior who used the Stafford loan program to borrow $4,000 four years ago when interest rates were 4.06% per year. $5,000 was borrowed.

Distinguishing between money market and capital market : Describe the major advantages and disadvantages of three mains forms of business organizations: the proprietorship, the partnership and the corporation.

What are the possible effective rates of interest : Two years later, he receives a final payment of 1745.37 dollars that closes out the investment. What are the possible effective rates of interest?

Calculate the effective tax rate : You are asked to present an investment analysis of a new small residential income producing property for sale to a potential investor.

Determine at what age john will receive the second payment : Determine at what age John will receive the second payment.

User Account

All Pages