What is the effective annual rate on loan

Assignment Help Financial Management
Reference no: EM131563059

You want to buy a new sports coupe for $75,500, and the finance office at the dealership has quoted you a loan with an APR of 7.9 percent for 72 months to buy the car.

Requirement 1:

What will your monthly payments be? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Monthly payment $

Requirement 2:

What is the effective annual rate on this loan?

Reference no: EM131563059

Questions Cloud

Determine the resistances of two resistors : Solve the given quadratic equations by any appropriate method. All numbers are accurate to at least two significant digits.
Review the story maupassant's- the jewelry : Once the secret of Madame Lantin's jewelry is revealed, what details from earlier in the story take on a different significance
Develop your statement of purpose for your information : Develop your Statement of Purpose for your Information Security Plan (ISP).The Scope provides a statement of the boundaries of the policy.
What is the after tax salvage value of the equipment : What is the after tax salvage value of the equipment at the end of year 3? Prepare a pro forma income statement for the project for each year.
What is the effective annual rate on loan : What will your monthly payments be? What is the effective annual rate on this loan?
Conduct research into the question : Conduct research into the question and provide LCC with a letter asserting your opinion based on your research
Describe legal rights and privileges of common stockholders : Briefly describe the legal rights and privileges of common stockholders.
Find the time if the p is given : A testing station found P parts per million (ppm) of sulfur dioxide in the air as a function of the hour h of the day to be p = 0.00174(10 + 24h - h2).
Call option contracts with strike price : You purchase 14 call option contracts with strike price of $80 and a premium of $1.80. Assume stock price at expiration is $92.00. What is your dollar profit?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the companys cost of equity

The Absolute Zero Co. just issued a dividend of $2.80 per share on its common stock. The company is expected to maintain a constant 5.8 percent growth rate in its dividends indefinitely. If the stock sells for $56 a share, what is the company’s cost ..

  Differences in the values of the betas of the two companies

discuss the factors that might explain the differences in the values of the betas of the two companies.

  Equipment that will be added to an ongoing asset pool

HFX Ltd. has the opportunity to undertake the following project: The project requires an immediate $1,000,000 investment in equipment that will be added to an ongoing asset pool with a 20% CCA rate. The market value of the equipment then is expected ..

  What must coupon rate be on the bonds

Barnes Enterprises has bonds on the market making annual payments, What must the coupon rate be on the bonds?

  What is the internal growth rate of eagle sport

The financial statements of Eagle Sport Supply are shown in the below table. For simplicity, “Costs” include interest. Assume that Eagle’s assets are proportional to its sales. Assume a growth rate of 35%. What is the internal growth rate of Eagle Sp..

  Including both employee and employer contributions

what is the total contribution to the account in 2016 including both employee and employer contributions?

  Moral hazard associated with the principal-agent problem

Starting in the 1980's, there has been a large increase in the issuance of bonds relative to issuance of stock by corporations. Explain why this might be a response of stockholders to the moral hazard associated with the principal-agent problem.

  Compute the current share price of firm

Firm A is all equity with 100M shares outstanding. The firm has $150M in cash and expects future free cash flows of $65M/year. The management plans to use the cash available to expand the firm’s operations. The expansion will increase future free cas..

  Use derivagem to calculate the cost of setting up

Suppose that the price of a non-dividend-paying stock is $32, its volatility is 30%, and the risk-free rate for all maturities is 5% per annum.  - Use DerivaGem to calculate the cost of setting up.

  Calculate the cost of debt-quity and the wacc

The firm decides to raise $30 million by selling equity and debt. Calculate the cost of debt, equity, and the WACC.

  Compute the bond current yield

A 3.70 percent coupon municipal bond has 15 years left to maturity and has a price quote of 95.65. Compute the bond’s current yield.

  What is the current share price

Bui Corp. pays a constant $12 dividend on its stock. The company will maintain this dividend for the next nine years and will then cease paying dividends forever. Required: If the required return on this stock is 10 percent, what is the current share..

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