Ask Question
BusinessBusiness
29 February, 06:02

A company borrows 100,000 today at 12% nominal annual interest. the monthly payment of a 5 year loan is most nearly:

+4
Answers (1)
  1. 29 February, 06:27
    0
    Formula for the monthly payment:

    M = P * r * (1 + r) ^n / ((1 + r) ^n + 1)

    where: P = $100,000 r = 0.12 : 12 = 0.01 n = 12 * 5 = 60

    M = 100,000 * 0.01 * (1 + 0.01) ^60 / ((1 + 0.01) ^60 + 1) =

    = 1,000 * (1.01) ^60 / ((1.01) ^60 + 1) =

    = 1,000 * 1.8167 / 0.8167 = 1,000 * 2.22444 =

    = $2,224.44

    The monthly payment is $2,224.44.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company borrows 100,000 today at 12% nominal annual interest. the monthly payment of a 5 year loan is most nearly: ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If average store profitability is high in a trading area, then the trading area is most likely to be:
Answers (1)
Joes hotdog stand merges with a company that supplies the condiments to joes this is an example of
Answers (1)
Brief Exercise 3-7 Sheridan Company's weekly payroll, paid on Fridays, totals $6,600. Employees work a 5-day week.
Answers (1)
At December 31, 2019, Shiga Naoya Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,500 shares $10,750,000 Common stock, $5 par, 4,000,000 shares 20,000,000 During 2020, Shiga Naoya did not issue any
Answers (1)
On April 5, 2019, Kinsey places in service a new passenger automobile that cost $60,000. The car is used 100% for business in each tax year. Kinsey uses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset).
Answers (1)
New Questions in Business
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)
During a certain four-year period, the consumer price index (CPI) increased by 30%, but during the next four-year period, it increased by only 10%. Which of these conditions must have existed during the second four-year period? A. Deflation B.
Answers (2)
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.).
Answers (1)
Name and describe the four basic types of fees and cost a franchise owner must pay
Answers (1)
What is the difference between capital gain and capital loss?
Answers (1)
Home » Business » A company borrows 100,000 today at 12% nominal annual interest. the monthly payment of a 5 year loan is most nearly:
Sign Up Forgot Password?