What nominal interest rate is aerotron paying on the loan

Assignment Help Financial Management

Reference no: EM131837552

Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire 1st year and then to pay $526.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month).

a. What nominal interest rate is Aerotron paying on the loan?

b. What effective interest rate are they paying?

c. How much of the 14th month’s payment is interest? How much is principal?

d. How much of the 18th month’s payment is interest? How much is principal?

e. How much of the 22nd month’s payment is interest? How much is principal?

Reference no: EM131837552

Questions Cloud

Prepare analysis of the income statement data : Comment on the relative profitability of the companies by computing the 2017 return on assets and the return on common stockholders' equity for both companies.

Write a paper about the interview subject : Students shall interview a person who currently or has worked in a management position and write a 4-6 page paper about the interview subject

Write a paragraph or more for each given influence : Write a paragraph or more for each influence. In essence, these paragraphs encapsulate the most important things you took away from the three experiences.

How walmarts choice of market focus contributes : Post an analysis of the role of strategic planning in establishing competitive advantage. Your analysis should include the following:

What nominal interest rate is aerotron paying on the loan : What nominal interest rate is Aerotron paying on the loan? What effective interest rate are they paying?

Calculate the average collection period : Sales on account were $375,000. Sales returns and allowances amounted to $25,000.

How much will you have to pay every two years : You are thinking about buying a piece of art that costs $20,000. how much will you have to pay every two years?

Commonly associated with personal financial decisions : What types of risks are commonly associated with personal financial decisions?

How effectively you can communicate with the reader : Using the determinants of price elasticity of demand, discuss whether you think the elasticity of demand for butter to be inelastic or elastic?

User Account

All Pages