If you borrow ($40),000 at 9 percent annual compound interest and pay it back with 7 equal
Question:
If you borrow \($40\),000 at 9 percent annual compound interest and pay it back with 7 equal annual payments, what will be the size of each payment if the first payment occurs 1 year after borrowing the \($40\),000?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
To find the size of each payment for repaying the loan we can use the formul...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
Question Posted:
Students also viewed these Business questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
Sharpe Knife Company expects sales next year to be $1,540,000 if the economy is strong, $820,000 if the economy is steady, and $540,000 if the economy is weak. Mr. Sharpe believes there is a 25...
-
In Exercises, find the limit. lim 5 x 0-x 813 X
-
Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity....
-
The Silver Star Bicycle Company will be manufacturing both mens and womens models for its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule...
-
Repeat the calculations of Example 6.3, but for \(80 \mathrm{~mol} \%\) of the liquid distilled. Data From Example 6.3:- Suppose the liquid of Example 6.1 [50 mol% n-heptane (A), 50 mol% n-octane...
-
On May 1, 2014, Hopkins Corp. issued $720,000, 7%, 5-year bonds at face value. The bonds were dated May 1, 2014 and pay interest semiannually on May 1 and November 1. Financial statements are...
-
3. A function f has the values shown below: x 1 1.25 1.5 1.75 f(x) 10 8 7 6 a. Use Midpoint rule to approximate f(x)dx b. Use Simpson's rule to approximate f(x)dx 25
-
Sara Beth made annual deposits of $5,000 in an account that paid 4 percent compounded annually. How much money should be in the account immediately after her tenth deposit?
-
Develop a single spreadsheet that allows you to calculate any of the P|A, A|P F|A, or A|F factors. For each cell where the calculation is performed, place above it a small control panel that allows...
-
Calculate the output voltage in the circuit of Fig. 11.49. sio kca IRAD 22 L0 20 FIG. 11.49 Problem
-
Make a list of your strong-tie and weak-tie relationships. (Include at least five names on each list.) Select two names from your list of weak-tie relationships and speculate on the types of new...
-
1 kg of copper at 600C and 1 bar is immersed in 20 kg of water at 20C and 1 bar in a well-insulated container. Consider the system to be both the copper and the water. Calculate the change in...
-
Quisco Systems has 6.4 billion shares outstanding and a share price of $17.93. Quisco is considering developing a new networking product in house at a cost of $498 million. Alternatively, Quisco can...
-
Determine the exergy of a system of pure water containing 1 kg ice and 10 g water vapor at 220C. Take the environment to be at 10C and 1 bar.
-
Honda Motor Company is considering offering a $2000 rebate on its minivan, lowering the vehicles price from $30,600 to $28,600. The marketing group estimates that this rebate will increase sales over...
-
Air at 80 kPa, 27C, and 220 m/s enters a diffuser at a rate of 2.5 kg/s and leaves at 42C. The exit area of the diffuser is 400 cm2. The air is estimated to lose heat at a rate of 18kJ/s during this...
-
How is use of the word consistent helpful in fraud reports?
-
Suppose shirts are one of 3 colors (red, blue and green) and pants are either black or brown. An outfit consists of a shirt and pants. What is the minimum number of people that need to be in a room...
-
A clothing manufacturer has determined that the cost of producing T-shirts is $1 per T-shirt plus $3040 per month in fixed costs. The clothing manufacturer sells each T-shirt for $20. Step 1 of 4:...
-
8.12 In a sample of 1000 adults, 30% complain of suffering from insomnia. Use equation 8.10 to calculate the 95% confidence interval for this proportion and compare this interval to that found in...
Study smarter with the SolutionInn App