What is the dollar amount devoted to principal

Assignment Help Financial Management
Reference no: EM131892432

1. ABC Company borrowed $1,000,000 for five years at a nominal annual rate of 6% compounded monthly. Each month ABC made their interest payment on the loan and deposited an amount D into a sinking fund paying an annual effective rate of 5%. The amount D was exactly enough to accumulate $1,000,000 so that ABC could pay off the loan at the end of five years Find D.

2. Assume that you have borrowed $150,000 from the bank at an annual interest rate of 6.25% for 20 years. What is the dollar amount devoted to principal in the first monthís payment: (a) 315; (b) 279; (c) 382; (d) 1,329. This is compounded monthly

Reference no: EM131892432

Questions Cloud

What is philosophy-framework of counseling : What is your philosophy/framework of counseling? How has it changed from the beginning of the course?
Problems common to all psychological assessment : List the 5 measurement problems common to all psychological assessment (which can include tests, interviews, behavior coding systems
Develop a wellness program with a holistic approach : Develop a wellness program with a holistic approach for the older adult you identified, using resources available in your community.
Discuss professional standards pertaining to tax preparation : Discuss the professional standards pertaining to the tax preparation, review and forensic services. Additionally, analyze the CPA's duties to Yellow King.
What is the dollar amount devoted to principal : What is the dollar amount devoted to principal in the first months payment:
Implications of managing health information : What are the implications of managing health information if your organization becomes an ACO? Please provide detail explanation.
Success or failure of a projects : What are the employees contribution to the success or failure of a projects whether formally or informally projects.
Part of the executive team at five guys : At least seven family members are part of the executive team at Five Guys. What effect do you think this fact should have on top-management teamwork?
Suitable commercial items are available in the marketplace : What is the CO prohibited from doing if no suitable commercial items are available in the marketplace, even if the government's needs are restated

Reviews

Write a Review

Financial Management Questions & Answers

  Dividends are expected to grow at a rate

Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter.

  Compute the expected share price-perpetual growth method

Suppose the dividends for the Seger Corporation over the past six years were $1.36, $1.44, $1.53, $1.61, $1.71, and $1.76, respectively. Compute the expected share price at the end of 2014 using the perpetual growth method.

  What are the three basic structures of mutual funds

What are the three basic structures of mutual funds? What are the general purposes of using mutual funds in individual investment portfolios?

  What is the weighted average cost of capital for corporation

What is the weighted average cost of capital for corporations that finance an expansion project using 30% retained earnings and 70% venture capital. Assume the interest rates are 8% for the equity financing and 13% for the debt financing.

  What is yield to maturity of the bond

What is the yield to maturity of the bond? What is the current yield?

  What is the market value of beta corporations equity

Alpha Corporation and Beta Corporation are identical in every way except their capital structures. Alpha Corporation, an all equity firm, has 14,500 shares of stock outstanding, currently worth $20 per share. Beta Corporation uses leverage in its cap..

  Firm is considering investing in project with the cash flows

Suppose your firm is considering investing in a project with the cash flows shown below, Use the PI decision rule to evaluate this project.

  Identify major process issue

Identify a major process issue (bottleneck) that is either contributing to or preventing the competitive advantage of Apple Inc. (brand appeal/customer loyalty/premium pricing) from being fully achieved?

  How does an ipo allow an organization to grow financially

What is an IPO? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, instead of an IPO, more appropriate?

  What is the annual savings contribution

A young couple is planning for the education of their two children. They plan to invest the same amount of money at the end of each of the next 16 years, i.e., the first contribution will be made at the end of the year and the final contribution will..

  Decided to bid on the contract-what bid price

Dahlia Enterprises needs someone to supply it with 122,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $890,000 to install the equipment n..

  Make the desired withdrawals at retirement

What amount must she deposit annually now to be able to make the desired withdrawals at retirement?

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