The rate of interest on Federal government debt borrowed in 2020is 2.75%. If you borrow...

The rate of interest on Federal government debt borrowed in 2020 is 2.75%. If you borrow $13,001 by the time you graduate and rates stay the same, what will be your monthly payment if you want to pay it off in 14 years?

Expert Solution

Number of months = 14 * 12 = 168

n = 168

Monthly interest rate, r = 2.75%/12 = 0.002291666667

PV = 13,001

Monthly payment = $93.3249733713

jeff jeffy answered 2 years ago

The rate of interest on Federal government debt borrowed in 2020 is 2.75%. If you borrow...

The rate of interest on Federal government debt borrowed in 2020 is 2.75%. If you borrow $14,618 by the time you graduate and rates stay the same, what will be your monthly payment if you want to pay it off in 8 years? A stock has a beta of 1.34. The risk free rate is 1.101% and the market risk premium is 5%. What is the fair return on the stock? Answer as a percent. Use at least 2 decimal...

Differentiate the types of federal government debt

Watson Waterbed Works Inc. has an EBIT of $2.75 million, can borrow at 14% interest, and...

Watson Waterbed Works Inc. has an EBIT of $2.75 million, can borrow at 14% interest, and pays combined state and federal income taxes of 30%. It currently has no debt and is capitalized by equity of $12 million. The firm has 1.5 million shares of common stock outstanding that trade at book value. Calculate Watson's Net Income, ROE and EPS currently and at capital structures that have 20%, 40%, 60%, and 80% debt. Round ROE to one decimal place. Round...

Walston waterbed works Inc. has an EBIT $2.75 million, can borrow at 15% interest, and pays...

Walston waterbed works Inc. has an EBIT $2.75 million, can borrow at 15% interest, and pays combined state and federal income taxes of 40%. It currently has no debt and is capitalized by equity of $12 million. The firm has 1.5 million shares of common stock outstanding that trade at book value. A.) Calculate Watson’s net income, ROE, and EPS currently and at capital structures that have 20%,40%, 60% and 80% debt. B.) Compare the EPS at the different leverage...

EXPECTED INTEREST RATE The real risk-free rate is 2.55%. Inflation is expected to be 2.75% this...

EXPECTED INTEREST RATE The real risk-free rate is 2.55%. Inflation is expected to be 2.75% this year, 4.25% next year, and 3.15% thereafter. The maturity risk premium is estimated to be 0.05 × (t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Do not round your intermediate calculations. Round your answer to two decimal places. %

You want to buy a house and will need to borrow $245,000. The interest rate on...

You want to buy a house and will need to borrow $245,000. The interest rate on your loan is 5.77 percent compounded monthly and the loan is for 30 years. What are your monthly mortgage payments?

Assume you are to borrow money, the loan amount, at an annual interest rate to be...

Assume you are to borrow money, the loan amount, at an annual interest rate to be paid in equal installments each period. Installment Loan Schedule Loan Amount $25,000 Annual Interest Rate 9.90% Periods per year 12 Years to payback 5 See Table B.3 in book. Factor 47.17454194 FACTOR = [1 - (1 / ((1 + R)^n)]/ R Equal Payments $529.95 let R = period interest rate let n = number of periods to payback loan Number of periods: 60 Reduction...

If you borrow $7,000 with an interest rate of 3 percent, to be repaid in five...

If you borrow $7,000 with an interest rate of 3 percent, to be repaid in five equal yearly payments at the end of the next five years, what would be the amount of each payment? Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Amount of each paymet

If you borrow $7400 at $700 interest for one year, what is your effective interest rate...

If you borrow $7400 at $700 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) Effective Rate of Interest a. Annual payment % b. Semiannual payments % c.Quarterly payments % d. Monthly payments %

Compound Interest 22.) You borrow 1,000,000 for one year from a friend at an interest rate...

Compound Interest 22.) You borrow 1,000,000 for one year from a friend at an interest rate of 1% per month instead of taking a loan from a bank at a rate of 13% per year. Compare how much money you will save or lose on the transaction. 24.) John expects to receive Php 20,000 in 10 years. How much is the money worth now considering interest at 6% compounded quarterly? 25.) A man who won P 500,000 in a lottery...

Question