elhing Posts: 1, Reputation: 1 New Member #1 Apr 4, 2009, 11:32 PM
Corporate Finance
I am practising for my midsem exam tomorrow and having problems with one question which says to find out the years of the loan taken out.

Loan - 100,000
Interest Rate - 12% compounded quarterly
Quarterly repayments are - \$5904.74

I have tried doing the problem but I am confused as to which formula to use..

 ROLCAM Posts: 1,420, Reputation: 23 Ultra Member #2 Apr 5, 2009, 04:23 AM

Loan - 100,000
Interest Rate - 12% compounded quarterly
Quarterly repayments are - \$5904.74

1 100,000.00 103,000.00 5,904.74 97,095.26
2 97,095.26 100,008.12 5,904.74 94,103.38
3 94,103.38 96,926.48 5,904.74 91,021.74
4 91,021.74 93,752.39 5,904.74 87,847.65
5 87,847.65 90,483.08 5,904.74 84,578.34
6 84,578.34 87,115.69 5,904.74 81,210.95
7 81,210.95 83,647.28 5,904.74 77,742.54
8 77,742.54 80,074.82 5,904.74 74,170.08
9 74,170.08 76,395.18 5,904.74 70,490.44
10 70,490.44 72,605.15 5,904.74 66,700.41
11 66,700.41 68,701.42 5,904.74 62,796.68
12 62,796.68 64,680.58 5,904.74 58,775.84
13 58,775.84 60,539.12 5,904.74 54,634.38
14 54,634.38 56,273.41 5,904.74 50,368.67
15 50,368.67 51,879.73 5,904.74 45,974.99
16 45,974.99 47,354.24 5,904.74 41,449.50
17 41,449.50 42,692.99 5,904.74 36,788.25
18 36,788.25 37,891.89 5,904.74 31,987.15
19 31,987.15 32,946.77 5,904.74 27,042.03
20 27,042.03 27,853.29 5,904.74 21,948.55
21 21,948.55 22,607.00 5,904.74 16,702.26
22 16,702.26 17,203.33 5,904.74 11,298.59
23 11,298.59 11,637.55 5,904.74 5,732.81
24 5,732.81 5,904.79 5,904.74 0.05

 Question Tools Search this Question Search this Question: Advanced Search

## Check out some similar questions!

Corporate Finance [ 2 Answers ]

In July 2005, American Airlines (AMR) had a market capitalization of \$2.3 billion, debt of \$14.3 billion, and cash of \$3.1 billion. American Airlines had revenues of \$18.9 billion. British Airways (BAB) had a market capitalization of \$5.2 billion, debt of \$8.0 billion, cash of \$2.9 billion, and...

Corporate Finance [ 1 Answers ]

Crabtree, Inc. has an operating cash flow of \$164,900, depreciation expense of \$93,100, and taxes paid of \$80,400. A partial listing of its balance sheet accounts is as follows: Beginning Balance Ending Balance Current assets 131,700 119,600 Net fixed assets 712,500 689,200 Current...

Corporate Finance [ 2 Answers ]

A stock sells for \$40. The next dividend will be \$4 per share. If the rate of return earned on reinvested funds is 15% and the company reinvests 40% of the earnings in the firm, what must be the discount rate?

Corporate Finance [ 2 Answers ]

Any help on solutions to these problems by 3pm EST 12/21/06? Security F has an expected return of 12 percent and a standard deviation of 9 percent per year. Security G has an expected return of 18 percent and a standard deviation of 25 percent per year. What is the expected return on a...