What is the highest rate you can afford

Assignment Help Finance Basics
Reference no: EM13273035

You want to borrow $58,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,200, but no more.

Required:

Assume monthly compounding, what is the highest rate you can afford on a 60-month APR loan?

 

Reference no: EM13273035

Questions Cloud

Recapitulation theory of embryology : What is recapitulation theory of embryology and what is embryology please explain
Fieldsman would intuitively solve to catch the ball : A cricket ball is thrown high up in the air and a fielder is attempting to catch the ball as it drops. Analyze the control problem that the fieldsman would intuitively solve to catch the ball.
How much did the company spend on new fixed assets : For the year just ended, Ypsilanti Yak Yogurt shows an increase in its net fixed assets account of $605. The company took $190 in depreciation expense for the year. How much did the company spend on new fixed assets?
Explain high kinetic energy and low probability : Sketch a well behaved wave function in 1-d with the labels I. High probability and high kinetic energy, ii low probability and low kinetic energy, ii high kinetic energy and low probability. Which of these (I-iii) will potential energy be highest
What is the highest rate you can afford : Assume monthly compounding, what is the highest rate you can afford on a 60-month APR loan?
Estimate the total fixed cost per month : What method did you use to make your estimates in "a" and "b" above? Are there any other possible methods that can be used? If so, state the advantages of each.
Culture and the impacts european intervention : Discuss their culture and the impacts European intervention had on their culture on the natives (Amerindians- Arawaks and Caribs).
Find the magnitude of the average force exerted on the ball : A 0.11-kg rubber ball is dropped onto a table. The speed of the ball right before it hits the table is 5.9 m/s. what is the magnitude of the average force exerted on the ball by the table
How effective discharge planning forms are : How effective discharge planning forms are when clinicians and nurses are preparing a patient for discharge - brief description of the research and some key headings for your literature review.

Reviews

Write a Review

Finance Basics Questions & Answers

  Debt financing and long term expenditures

You're the controller of a firm whose CEO believes which debt must always be employed to finance long-term expenditures because interest is tax deductible and debt does not dilute ownership.

  Calculate the net present value and internal rate of return

You put $800 into an investment that pays $70 in year 1, $70 in year 2, $190 in year 3 and $680 in year 4. The cost of capital is 9 percent. Calculate the net present value and internal rate of return of the investment

  Compute the realized rate of return for investors

Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Round your answer to two decimal places.

  Finding out strength as well as weakness of organization

Finding out strength as well as weakness of organization using ratio analysis and what is causing this drop in net income

  What is probability that this particular bid will successful

You work for a consulting firm, and have submitted a bid for a large consulting contract. The firm's management thinks it has a 50-50 chance of landing the project.

  Question on ethical challenges

Describe ethical challenges an accountant could face in recognizing revenue for firm. How could these challenges be addressed?

  Determine the market rate of return

Bet'R Bilt Bikes just announced that its yearly dividend for this coming year will be $2.42 a share and that all future dividends are expected to increase by 2.5% yearly.

  Explain the impact on the banks net interest income

Explain the impact on the bank's net interest income of interest rates increasing by 1% every year for the next three years.

  United-continental airline merger

Research United and Continental Airline merger, measure the challenges experienced during the merger and resulting impact to the business.

  What is the amount of interest revenue recognized by seller

On June 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends June 30. Using the 360-day year in your calculations, what is the amount of interest revenue recognized by Seller in the ..

  Key elements in organizational structure

There are six key elements to consider when discussing organization structure considerations which are:

  How many of the 2-year bonds would you need

The duration of a 10-year bond is 8.75 and the duration of a 2-year bond is 1.25. Both bonds are priced at par. How many of the 2-year bonds would you need to own to have the same interest rate sensitivity as one 10-year bond?

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