You have just purchased a new warehouse. to finance the purchase, you’ve arranged for a 30-year mortgage loan for 80 percent of
2 answers:
<u>The annual percentage rate on the loan is 6.72% </u>
Further Explanation:
Annual Percentage Rate: It measures the rate of return earned on the investment or Rate charged on the loan.
Calculate the Annual percentage rate:
To calculate the APR we will calculate the present value of the annuity stream:
Where,
PV = the present value of an annuity stream
PMT = the annual future payment
r = the interest rate or the discount rate
n = the number of periods
And,
Annual percentage rate = 0.560 × 12
= 6.72%
<u>Therefore, the annual percentage rate on the loan is 6.72%. </u>
Working Notes:
Amount Borrowed = $2,900,000 × 0.80
=$2,320,000
Learn more:
1. Learn more about the lifetime cost of the loan along with interest
2. Learn more about the interest on credit card
3. Learn more about compound interest
Answer details:
Grade: High School
Subject: Financial Management
Chapter: Time value of money
Keywords: You have just purchased a new warehouse. to finance the purchase, you’ve arranged for a 30-year mortgage loan for 80 percent of the $2,900,000 purchase price, the monthly payment on this loan will be $14,900. Requirement, what is the apr on this loan.
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The stock is now trading at $52.16 per share.
The current value of an annuity of n regular payments of P at r% with yearly payments is provided by:
PV = P × (1 -(÷r))
Estes Park Corp. distributes a fixed rate of a dividend of P = $7.80 per share on its shares. The corporation will retain this dividend for the following n = 13 years before ceasing dividend payments permanently. If the necessary returns on this stock are not metis r = 11.2% = 0.112.
The actual share price is calculated as follows:
Current share price = $7.80 × (1 -(÷0.112))
$7.80 × ((1 - 0.251) ÷ 0.112)
$52.16
Therefore, the current share price is $52.16
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Answer: hello your question is incomplete attached below is the complete question.
answer :
3.02 million, 2.96 million, 2.91 million
Explanation:
<u>Determine the swap rate over a 3-year period</u>
swap rate = forward exchange rate * exchange amount
For year 1
1.4 * ( 1 + 0.03 / 1 + 0.05 ) * 2.2 million
= 1.4 ( 0.98095 ) * 2.2
= 3.02 million
For year 2
1.4 * ( 1 + 0.03 / 1 + 0.05 )^2 * 2..2 million
= 1.4 ( 0.98095 )^2 * 2.2 million
= 2.96378 million
For year 3
1.4 * ( 1 + 0.03 / 1 + 0.05 )^3 * 2.2 million
= 1.4 ( 0.98095 )^3 * 2.2 million
= 2.90733 million
