What is the remaining balance of the loan after 2 years

Assignment Help Finance Basics
Reference no: EM132652753

As the compound interest rate increases, the present value of future cash flows decreases. True False

An investor is considering an investment that pays a cash flow of $506 annually in perpetuity. The first cash flow is in the 3th year. If the interest rate is 12%, what is the present value of this investment? (round your final answer to the nearest dollar)

An investor interested in learning what must be earned on investments in order to allow their savings to grow to a certain amount of money in the future is interested should solve for which variable?

the number of periods

the interest rate

the payment

the present value

the future value

What is the present value of an ordinary annuity that pays $302 per year for 23 years at 8%? Assume annual compounding. (round your answer to the nearest dollar)

Consider a loan for $100,000 to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 4% compounded annually. What is the remaining balance of the loan after 2 years?

Reference no: EM132652753

Questions Cloud

What is the amount of utility bill : SR 200, your variable cost is SR2 per kilowatt hour, and your monthly activity level is 3,000 kilowatt hours, what is the amount of your utility bill?
What do the patterns indicate about the companies tendencies : What do the patterns indicate about the companies' tendencies in estimating their allowances for doubtful accounts?
What is measured by profitability ratios : What is measured by profitability ratios? Give an example of how you compute EPS and discuss how it is used to measure profitability.
Create line item budget : Create a line item budget for the agency. Identify which level of government uses the budget (federal, state, and/or city).
What is the remaining balance of the loan after 2 years : As the compound interest rate increases, the present value of future cash flows decreases. True False
Public Policy in the US Federal System : Effective public administrators, as well as effective citizens, must be well informed about public policy.
What is the cost of new common stock : You obtained the following data: D1 = $1.75; P0 = $42.5; g = 7%; F = 5%. What is the cost of new common stock (ke)?
Step system for completing legal research process : Create a detailed three step system for completing the legal research process.
Find expected forward rate for the second year : A one-year Treasury bill offers a 7% yield to maturity. A two-year Treasury bill offers a 7.8% yield to maturity.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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