Jennifer wishes to determine how long it will take to repay a 7,000 loan given that the
Question:
Jennifer wishes to determine how long it will take to repay a £7,000 loan given that the lender requires her to make annual end-of-year installment payments of £1,225.
a. If the applicable interest rate on the loan is 9%, how long will it take her to repay the loan fully?
b. How long will it take if the interest rate is 12%?
c. How long will it take if the annual interest rate is increased to 15%?
d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Jennifer to repay the loan fully.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
Jennifers Loan Repayment Time To solve this we can use the loan payment formula Payment Loan Amount ...View the full answer
Answered By
Hassan Imtiaz
The following are details of my Professional Experience. Responsibilities Eight years of demanding teaching experience in the field of finance and business studies at Master’s Level. Completion of the given tasks within given time with quality and efficiency. Marketing professional with practical experience in and solid understanding of a diverse range of management applications, including market analysis, sales and marketing, team building and quality assurance. I have excellent skills to approach deal and sustain corporate clients / customers by demonstrating not only extraordinary communication and interpersonal skills but also high caliber presentation, negotiation and closing skills. Manage and follow up the day-to-day activities. Manage and co-ordinate the inventories. Fulfillment of all the tasks assigned.
The following are details of my Areas of Effectiveness. Finance 1. Corporate Finance 2. Advanced Corporate Finance 3. Management of Financial Institutions 4. International Financial Management 5. Investments 6. Fixed Income 7. Real Estate Investment 8. Entrepreneurial Finance 9. Derivatives 10. Alternative Investments 11. Portfolio Management 12. Financial Statement Analysis And Reporting (US GAAP & IFRS) 13. International Financial Markets 14. Public Finance 15. Personal finance 16. Real estate 17. Financial Planning Quantitative Analysis 1. Time Value Of Money 2. Statistics 3. Probability Distribution 4. Business Statistics 5. Statistical Theory and Methods Economics 1. Principles of Economics 2. Economic Theory 3. Microeconomic Principles 4. Macroeconomic Principles 5. International Monetary Economics 6. Money and Banking 7. Financial Economics 8. Population Economics 9. Behavioral Economics International Business 1. Ethics 2. Business Ethics 3. An introduction to business studies 4. Organization & Management 5. Legal Environment of Business 6. Information Systems in Organizations 7. Operations Management 8. Global Business Policies 9. Industrial Organization 10. Business Strategy 11. Information Management and Technology 12. Company Structure and Organizational Management Accounting & Auditing 1. Financial Accounting 2. Managerial Accounting 3. Accounting for strategy implementation 4. Financial accounting 5. Introduction to bookkeeping and accounting Marketing 1. Marketing Management 2. Professional Development Strategies 3. Business Communications 4. Business planning 5. Commerce & Technology Human resource management 1. General Management 2. Conflict management 3. Leadership 4. Organizational Leadership 5. Supply Chain Management 6. Law 7. Corporate Strategy Creative Writing 1. Analytical Reading & Writing Other Expertise 1. Risk Management 2. Entrepreneurship 3. Management science 4. Organizational behavior 5. Project management 6. Financial Analysis, Research & Companies Valuation 7. And any kind of Excel Queries
4.80+
150+ Reviews
230+ Question Solved
Related Book For
Principles Of Managerial Finance
ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
Question Posted:
Students also viewed these Business questions
-
In Example 11.3 (Figure 11.12) how many frames are in transit at the same time? Figure 11.12 Receiving node Network Sending node Network Data-link Data-link Packet Frame Legend Packet ACK Start the...
-
Mia Salto wishes to determine how long it will take to repay a $14,000 loan given that the lender requires her to make annual end-ofyear installment payments of $2,450. a. If the interest rate on the...
-
Mia Salto wishes to determine how long it will take to repay a loan with initial proceeds of $14,000 where annual end-of-year installment payments of $2,450 are required. a. If Mia can borrow at a...
-
How well employees modify their thoughts and behavior to align with and support a new or changing environment is known as Multiple Choice proactive task performance. proficient task performance....
-
Watson Corporation's statement of financial position data for current assets and liabili- ties were as follows: Adjust net income of $320,000 for changes in operating assets and liabilities to arrive...
-
Lars Linken opened Lars Cleaners on March 1, 2020. During March, the following transactions were completed. Mar. 1 Issued 10,000 shares of common stock for $15,000 cash. 1 Borrowed $6,000 cash by...
-
Use the figure at the right to find the probability that a randomly selected draft pick is not a running back or a wide receiver. NFL Rookies A breakdown by position of the 253 players picked in the...
-
1. What are the strengths and weaknesses of the Campbell Soup Company's marketing information system? 2. What objectives does Campbell have for the marketing research efforts described in this case?...
-
1. The 25-kg box is launched from the position shown along the rough horizontal plane with the velocity of 8 m/s. Determine the distance x that the box will travel before the spring stops forward...
-
What is interest rate risk? How does a bonds maturity affect its interest rate risk? How about the bonds coupon rate?
-
Peter Brierley, based in Singapore, wishes to determine how long it will take an initial investment of SGD 10,000 to double. a. If Peter earns 7% annual interest on his investment, how long will it...
-
The article Medicine Cabinet is a Big Killer (The Salt Lake Tribune, August 1, 2007) looked at the number of prescription-drug-overdose deaths in Utah over the period from 1991 to 2006. Construct a...
-
As a recently qualified financial advisor, you are helping a client who is a bright scholarship student who just graduated from university invest her 1,000,000 inheritance from an estranged relative....
-
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and...
-
Kelly Construction Company , a three - year - old business , provides contracting and construction services to a variety of clients . Given that each construction job is different from the others ,...
-
An uncharged 1 0 . 0 - mu F capacitor, an 8 0 - V DC power supply, and a 2 0 . 0 - M resistor are connected in series to form a closed loop. Determine the current in the circuit 4 0 0 s after the...
-
Describe the financial methods used for a pro forma operating budget for planning the implementation and the control phase of the health improvement project for reducing the number of hospital staff...
-
Normally, a manufacturer maintains an accounting system that includes a materials ledger and a general ledger account for Materials. What is the relationship between the materials ledger and the...
-
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
-
Consider the following balance sheets and selected data from the income statement of Keith Corporation. a. Calculate the firms net operating profit after taxes (NOPAT) for the year ended December 31,...
-
Consider the following balance sheets and selected data from the income statement of Keith Corporation. a. Calculate the firms net operating profit after taxes (NOPAT) for the year ended December 31,...
-
Below we reproduce the stockholders equity section of the 2019 and 2018 balance sheets for Baker Corporation, which also appear as part of Table 4.5. a. The Baker Corporation statement of cash flows...
-
Explore the challenges and benefits of maintaining investment in a subsidiary account using different equity and cost methods. Discuss situations where one method might be preferred over others and...
-
Offering an employee an incentive whenever a department is short staffed to pick up a shift, how does that motivate the employee?
-
A university has two types of students. BS students and MS students. MS students can be further categorized in MS-by-research and MS-by-coursework students. All the students have their names,...
Study smarter with the SolutionInn App