Question

Asked Jan 23, 2019

If you buy a factory for $250,000 and the terms are 20 percent down, the balance to paid off over 30 years at a 12 percent rate of interest on the unpaid balance, what are the 30 equal annual payments.?

My question is what would be the pv (resent value), and number of periods. I am doing this in excel

Step 1

Total price of factory is $ 250000.

Down payment @ 20% i.e. 250000 *20% = 50000 has been made. Therefore, the balance to be financed through loan amount to be paid in 30 annual instalment at the in...

Tagged in

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: Calculating the anticipated return after financing costs with the most aggressive asset financing mi...

Q: Someone in the 15 percent tax bracket can earn 8 percent annually on his investments in a tax-exempt...

A: Calculation of After-Tax Value of Investment:The account is a tax exempt account. Hence the 15% tax ...

Q: How do you calculate yield to maturity?

A: The yield to maturity is nothing but the interest rate of a bond. It can also be termed as the inter...

Q: Sadik Inc.'s bonds currently sell for $1,242.65 and have a par value of $1000. They pay a $105.00 an...

A: The yield to call on the bond can be calculated using the RATE function of excel. Inputs of the RATE...

Q: If a family spent $250 a week on their typical purchases in 1950, how much would those purchases hav...

A: Calculating the cost of purchases in 1980 using consumer price index. We have,1980 purchases = 1950 ...

Q: The ROA of your firm is 5%. The firm also has a debt-asset ratio of 70%. If your firm reinvests 100%...

A: Calculating the value of internal growth rate. We have,Internal Growth Rate = ROA X RR / (1 – ROA X ...

Q: Buoyant Cruises plans to issue preferred stock with a $120 par value and a 5 percent dividend. Even ...

A: Calculation of cost of issuing preferred stock:

Q: Suppose you observed the following situation: Security Beta Expected Return Cooley, Inc. 1.6 19%...

A: Calculation of Risk Free Rate:The risk free rate can be calculated using the CAPM. Follow the below ...

Q: Ms. Cristiana Piccini is valuing an investment that pays her $27,000 per year for the first ten year...

A: Calculation of Value of Investment: Excel Spreadsheet: