Free Essay

I Want to Learn

In: Other Topics

Submitted By chriswong
Words 285
Pages 2
Prof. Dr. Rainer Stachuletz

Corporate Fincance and

Investment Policy

Case 2
Chapter 3 The Concept of Present Value

The Corporation

Present Value Corporation is building a $25 million office building in Las Vegas and is financing the construction at an 80 percent loan-to-value ratio, where the loan is in the amount of $20,000,000. This loan has a ten-year maturity, calls for monthly payments, and is contracted at an interest rate of 8 percent.


Using the above information, answer the following questions.

1. What is the monthly payment?
2. How much of the first payment is interest?
3. How much of the first payment is principal?
4. How much will Corporation owe on this loan after making monthly payments for three years (the amount owed immediately after the thirty-sixth payment)?
5. Should this loan be refinanced after three years with a new seven-year 7 percent loan, if the cost to refinance is $250,000? To make this decision, calculate the new loan payments and then the present value of the difference in the loan payments.
6. Returning to the original ten-year 8 percent loan, how much is the loan payment if these payments are scheduled for quarterly rather than monthly payments?
7. For this loan with quarterly payments, how much will Corporation owe on this loan after making quarterly payments for three years (the amount owed immediately after the twelfth payment)?
8. What is the annual percentage rate on the original ten-year 8 percent loan?
9. What is the effective annual rate (EAR) on the original ten-year 8 percent loan?



Similar Documents

Premium Essay

Scholarship I Want success, I continue to push myself further so that I can always grow as a person. In high school my primary goals included being in the top two of my class and getting into a University. I accomplished both of them! Now that I’m here, my new goals are to try as hard as I can to succeed here as well as I did in high school. My grade point average as well as my lack of participation in student organizations may not reflect how hard I have really been working here, or show that I am a good candidate for this scholarship. I am a hard working first year student. As soon as I arrived here in August, I started work with Intramural Sports facility on campus. I continue to work as a student worker, 4 days a week shift (8pm-10pm). As most of you may know, settling into college isn't as easy for some as it is for others. All of my first semester was spent trying to get used what I had to do vs. what I wanted to do. Let alone adjusting to the work-load as a student working towards a major in MIS. I continue to adjust my schedule to succeed in my classes. Now that I’m starting to get used to what I need to be doing, I am doing very well in my classes! Trust me, working 4 days a week and having a 15 credit hour work load isn't easy. I wouldn't be working if I didn't have to be. I am a student, putting myself through college. I don’t have help from my parents, I pay for things myself, I have too many responsibilities to count, and I continue to do well. Needless to say, I am......

Words: 541 - Pages: 3

Premium Essay

I Want You

...I WANT YOU FOR THE U.S. ARMY!” Now, what would you do if someone were to ask you this? Or if you seen it out in town on a poster? Would you pay any attention to it or just walk on by? Most people would honestly just walk on by, unless, there was something in that particular poster that had caught their attention. Recruiting ads have changed over the years, but this one was popular. This particular recruiting advertisement was an effective argument because of their slogan, Uncle Sam, his stare, his point, and the use of America’s colors; red, white, and blue. I would say this particular recruiting image was for men or boys. Back then it were only the men or boys who could actually join the army. So, this poster excluded any women and girls because they were not allowed to join. The main targeted audience for this was for the younger men and boys, and for more than one reason. The younger they are, the more apt they are to be healthier. The army wants them to be younger because they can move more quickly and act upon things faster than someone who is older. They also want the men who don’t already have a family started because then they won’t have that worry while out in battle and can focus better on what they need to do. Where is the place where you see most advertisements for things? Out in town, right? This image was more than likely posted out in town on public buildings as well, that is where most of a town’s population goes for many different reasons. Having it out......

Words: 370 - Pages: 2

Premium Essay

Why I Want to Learn About Medicine

...Why I want to learn about medicine I have always known I wanted to work in medicine, ever since I was a child. I have worked as a Medical Assistant in orthopedics and gained several more certifications for almost eight years and enjoy every bit of it. I want to advance my knowledge and certifications so I can learn more and do more. I feel that the intricate detail of our body is all mechanics’, there is power in knowledge and I need to know it all. How is our body made and why does it work is truly what I’m interested in. My goal is to educate myself little by little to build up to being a RN-FLA, this will allow me to work for myself at some point and build my own schedule. Education can be scary, in the sense of traveling to the unknown. I find that I am a traveler with my learning. I need to go see it all, a nosey little busy body that looks and touches everything. Peer through every window of opportunity, if I don’t know or understand when it comes to medicine or education I am the first to ask. There is so much out there to learn, see and do, I can’t help but want to adventure it. I work in a field that is always changing with our fast paced society. Without new knowledge and advanced mechanics’ you as a medical provider or support staff will find that your patient will no longer trust your advice. Being said, I am a traveler, I need to have the knowledge and will search out the proper answers needed. Medicine needs to be given 100% otherwise lives can be at risk....

Words: 291 - Pages: 2

Free Essay

Why I Want to Be a Nurse

...I remember it like it was yesterday. The squeaky white floors, and how I had to stand on my “tippy toes” to see through the glass. In that room on the other side of the glass was what felt like hundreds of babies, new babies that had only been in this world for a so short of a time. I knew I wanted to be one of the “angels” caring for them. My sister was a preemie, born 9 weeks early, so the family spent a lot of time in the hospital with her. In the following weeks and months, I witnessed nurses staying not only at this tiny infant's side, but the family's also as she was hooked up to yet another tube. These nurses went above their required duties and cared for my sister and family not only physically, but emotionally and mentally. The nurses, far more than any doctor, were our support system. I, at that young age, would ask them my questions about what was to happen, and with patience and knowledge, they answered me with such care. Being such an intimate witness to the struggle of life and death left me with a deep sense of human fragility. I realized that the human body is so very intricate and beautiful in its complex delicacy. Witnessing a nurse's holistic role for the patient embedded deeper in me that I had a calling to serve others in the medical field, specifically in the field of children. Ecclesiastes 3:1 states that every endeavor man can undertake has its own time and meaning. Looking back on my own life, I see various experiences and opportunities of growth......

Words: 670 - Pages: 3

Premium Essay

Why I Want to Be a Teacher

...Professional football players all have in common? They are all dream careers commonly listed by elementary school students. When I was in fifth grade I remember coming home and informing my grandmother that when I grew up I was going to be a teacher. As many parents do she responded by asking me why, I enthusiastically responded “I want to be just like Mrs. Higginbotham and teach people words like nincompoop!” ​To this day I have not changed my mind. My reasons have matured from being astonished by vocabulary but my goal hasn’t. In hindsight I always liked to teach. I was the oldest sibling and turned our hallway into a classroom. When I was older I loved tutoring younger children. ​I was largely inspired by Mrs. Higginbotham. She taught me many things. She showed me learning could be fun. She taught me that no goal was unattainable. She created a lifelong interest in literature. As a teacher she tried to find something for everyone, even those students who already claimed they hated school. I wanted to be able to create the type of learning environment that she did for other children. As I grew I had other significant teachers who helped me cement the idea that I wanted to be an elementary school teacher. ​In high school I realized that all the teacher I considered truly good teachers had all the skills I wanted to learn. I wanted to be able to inspire students and work with them like many of my own educators had with me. The best teachers were good at...

Words: 512 - Pages: 3

Premium Essay

I Want in

...This is a test. I am trying to get some help with some of my work. I started school late and now I have been playing catch up. I came across this website and it seemed that I could use this website as a helping point in which I can look and refer to what ever I was doing at that time. Now, being that I have seen some of the articles that has graced your website, I would like to become a member because this seems like a good point of reference for me. So, in order to use the full capabilities of this website, I need to download a document. Now, at this present time, I have no documents to upload. So I will upload this so I can become a member and be able to utilize this website as my personal reference when I need it. In the near future, I plan to upload some of my work in order to satisfy this upload trial that I am being forced to upload just to become a member. So far, this website has helped me out greatly and I am hoping that once this group of words will be sufficient enough to allow me access to this site. Like I said earlier, this site will only be used as a reference due to some of the essays and assignments were done by students that were doing it before me. For all I know, their info may be wrong. That’s why I trust no work other than my own. Like I said before, this site will only be used as my reference. Thank you ....

Words: 276 - Pages: 2

Premium Essay

Before I Die I Want to

...Before I die I want to... Before I die I want to be able to do many things that I want to do but I will only highlight a few that I really would like to be able to focus on. One thing that I want to be able to do before I die is to be able to live happy and relaxed for a long period of time. Another thing that I would want to be able to do before I die is to travel to a few different countries or even states for example in particular South Korea and maybe London. Something else that I would want to be able to accomplish before I die is to be at the top position possible at a job in the IT field or some computer related position. Lastly before I die I would like to be able to live life without regrets. The reasoning behind me wanting to be able to live a happy and relaxed life is because ever since I got into high school I don’t think have been living constantly happy life, and I have defiantly not been able to be relaxed because I picked up a job that I almost work every day and have lots of things I have to constantly worry about especially now that I’m in college, and my grades really matter to me now and hoping that I will be able to do well in my classes. Another reason that I would want to live happily is because living happy can help your life span so If I continue on living stressed out and worried about things every day I feel like it can affect my health in the long term, I feel like being able to live worry free would be such a good feeling. I really......

Words: 605 - Pages: 3

Premium Essay

Why I Want to Teach

...of image they want to imprint on their students. Growing up I have had many teachers, some have left good and bad experiences in my life that has ultimately brought me to where I am today. “John Dewey was possibly the most influential educator of the twentieth century and probably the most controversial one”(Sadker &Zittleman 2010). I believe in being a progressive teacher in that I want to see my students at any skill level continue to improve. As a progressive teacher I will have 3 main goals: to inspire, grow and groom individuality into each student under my care in the classroom. I will a teacher whose image will never be forgotten and whose tenacity for education is never questioned. I believe that, if possible, every child no matter the age or ethnic background should be treated as an Individual in the classroom. In my own personal experiences being a student I have seen how even in a college setting the connection a teacher or professor can have with a student one on one is much more satisfying than a teacher who just teaches a class. Education, according to John Dewey, is the “participation of the individual in the social consciousness of the race” (Dewey, 1897). As such, education should take into account that the student is a social being. The process begins at birth with the child unconsciously gaining knowledge and gradually developing their knowledge to share and partake in society. Furthermore, in my educative journey with my students I want them to be......

Words: 1134 - Pages: 5

Premium Essay

Why I Want an Mba

...the many benefits that are attached to an education, I chose to continue my education so that my children will have a chance to fair well in tomorrow’s society. Setting the example is a start, but building a repertoire of tools that help in the development of my children and enhance our lifestyle is what my pursuit of a graduate degree is all about. It is undoubtedly that today's world it much more competitive than it was before. These days, even with a Bachelor's degree, most people still struggle to find a career that suits their interests. I believe Masters of Business Administration program is one that provides an opportunity for students to learn and to work hard in a setting that will grow qualities essential to success in the business. Given the fact that much of the success, if not all of the success, in modern business directly related to the leadership qualities of those in charge, I feel that I will be a good fit for the program at Southern Adventist University. My life has been shaped through experiences that have provided and afforded me the opportunity to develop and exercise leadership skills. My dream is to shift to a management position in my area. In order for me to do that, extensive business administration skills are needed. The skills that I will gain in this extensive MBA program will help make my dream a reality. The Southern Adventist University offers me a convenient schedule for my busy life. I understand that this program will be a challenge......

Words: 307 - Pages: 2

Premium Essay

I Want to Learn More

... | |(b) |Feedback Value. | (g) |Comparability and Consistency. | |(c) |Consistency. | (h) |Reliability. | |(d) |Neutrality. | (i) |Relevance and Reliability. | |(e) |Verifiability. | (j) |Timeliness. | EXERCISE 2-3 (a) Gains, losses. (b) Liabilities. (c) Investments by owners, comprehensive income. (also possible would be revenues and gains). (d) Distributions to owners. (Note to instructor: net effect is to reduce equity and assets). (e) Comprehensive income. (also possible would be revenues and gains). (f) Assets. (g) Comprehensive income. (h) Revenues, expenses. (i) Equity. (j) Revenues. (k) Distributions to owners. (l) Comprehensive income. EXERCISE 2-4 |(a) | 7. |Expense recognition principle. | |(b) | 5. |Historical cost principle. | |(c) | 8. |Full disclosure principle. | |(d) ...

Words: 10286 - Pages: 42

Premium Essay

I Want to Learn

...LETSGO HR SERVICES CURRENT CTC – 30 K NOTICE PERIOD – 1 MONTH CURRENT LOC - PUNE Disha Vinay Kulkarni, Flat no.14, Building no.S1, Siddheshwarnagar,Vishrantwadi, Date: 16/05 /2014. To, The Advertiser Sub: Application for the post of teacher in mathematics. Respected Sir/Madam, I, Disha Vinay Kulkarni, am M.Sc (Statistics). M.Ed. from Pune University. Knowing that there is vacancy for mathematics teacher at Camp branch . I am applying for the above post in your esteemed Organisation. I have worked as Assistant teacher in Air Force school (CBSC) for six months and St. Andrews School (State Board) Chinchwad, Pune for one year. I have vast experience of 12 years of Counseling, Co-ordination, and Administration etc in my own educational institute I would surely strive hard for the betterment of Organization, given an opportunity. Waiting for your positive and quick response. Thanking You, Yours sincerely, ( Disha Vinay Kulkarni) Resume Name: Disha Vinay Kulkarni Address: Flat No.14, Building S-1 Siddheshwarnagar, vishrantwadi, Pune-15 Birth date: 13/12/1972 Sex: female Marital status: married Religion: Hindu Bramhin Languages known: English, Hindi, Marathi. Profile: A self – motivated and efficient individual aiming for a career in Educational Organization. Experience in......

Words: 449 - Pages: 2

Premium Essay

I Want U

...I want u .u wsnt me Buyer behavior is the study of the individual, group, or organizations and the processes they used to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society and it is the decision processes and acts of people involved in buying and using products. There are a lot of factors that affects the buyer behavior. Consumer behaviour considers the many reasons such as personal and social to show why people shop for products, buy and use them, in certain case become loyal customers and then dispose of them. Perodua Company comes with varies vehicles that can attract buyers especially these who want an affordable yet efficient vehicle. The company mostly targets on individuals or families who want to buy quality car at a premium as Perodua Company sets up the prices that are reasonable and affordable by most consumers. Perodua Myvi is product on May 2005 by Perodua Company which is one of the examples for individual or family use. Personal factors are age and occupation; in other hand social factors are social class and other factors. Besides, personal factor is one of the factors that affects the buyer behavior. Personal factor contain suchvariable as ageand lifecycle stage, occupation, economic circumstances, lifestyle decisions and buying behavior are clearly influenced by the characteristics of each consumers. The family life cycle of the......

Words: 376 - Pages: 2

Free Essay

I Want.............

...higher prices went. Illinois Governor Rod Blagojevich went off the deep end with a program guaranteeing mortgage loans for illegal aliens. The peak of insanity was when Alphonso Jackson, Housing and Urban Development Secretary actually went so far as to send this message to private sub-prime lenders: 'I am absolutely emphatic about winning back our share of the market that has slipped away to subprime lenders.' Look at the insanity. Government was talking about winning market share from the private sector on housing.Then of course we have Bush's Ownership Policy making renters feel like second class citizens. Government has no business promoting one form of housing over another. The Fed's role in this was slashing interest rates to 1 percent in an inane attempt to prevent deflation in the aftermath of the last recession. At the same time Greenspan openly endorsed ARMs right at the bottom of interest rate yields. Greenspan is a man who was wrong at every major turn. History will not treat him kindly. The role of consumer greed should be obvious. How long will it be before housing finally hits bottom? And where will prices decline the most? It took Japan 18 years to hit bottom. I suspect it will take at least 5 to 7 here and 5 is very optimistic. It could easily take 10 years or more. My best guess is 7 but it all depends on what the Fed does to fight it. Ironically enough, the more the Fed fights it the longer it will take. That is what happened in Japan and it will likely......

Words: 3460 - Pages: 14

Free Essay

I Want to Live

...I Want To Live Life What do you think of when you hear the word marriage? When I hear that word, I think of two people so in love that they want to spend the rest of their lives together. They want to raise a family in a big house with a white picket fence and live happily ever after. Lets be real, statistics show that 40-50% of marriages will end in divorce. I don’t know about you, but those odds aren’t really in my favor. So when I look at it all there are just to many disadvantages to marriage. Getting married is such a hassle, why would anyone want to. You have to deal with wedding planners, flower arrangements, guest lists and etc. Theirs just to much to put into getting married your already stressing yourself out before you actually get into the marriage. Lets not forget about the things you have to give up. Such as, you aren’t able to take risks. The way I see it, life involves risks. Some that betters you off and some that bites you in the butt and set you back. From experience with me when I fall or get set back, I get up and take another risk and move on. I think taking risks are fine, as long as you’re the one who suffers from the setbacks. You can’t take those chances with another person’s life, health; money and future are in your hands. It would be a pretty selfish thing to do. To me marriage means your keeping the best interest of two people in mind at all times. Yeah, it might keep you from going to jail or other stupid moves, but it might also hold......

Words: 774 - Pages: 4

Premium Essay

I Want a Wife

...Who Wouldn't Want a Wife Marriage is one of the basic institutions of society. It has been researched and analyzed for centuries. Most beliefs have developed and changed, but some have remained as the fundamental basis. They are called marriage stereotypes or tenets being declared as true without giving proper reasoning. . In her essay " I Want a Wife", Judy Brady uses a pathos to describe the duties of a wife in the 1970's while writing in a persona of a husband. She explains why she would like to have a wife. Marriage stereotypes are certain ideas which are held true about marriage and roles of a husband and a wife in it. In Genesis 2:18 God states that it is not good that man is to be alone and He makes a helper suitable, or comparable to him. (Bible) A woman takes on the role of a helper when she marries, along with cooking, cleaning, and meeting the families need, according to society. At the beginning of the essay, Brady mentions that she belongs to that classified group of wives, married and with a child. As Brady is ironing clothes she starts thinking "I want a wife" after she thinks of a friend that ended being divorced and was waiting to find a wife. The author then reflects on her life and starts to write in a persona of a husband narrating all the duties that a wife would perform, as if narrating her own personal life. Not only does she want a wife that works but also attends to children, along with keeping up with their doctors appointment and attend to......

Words: 587 - Pages: 3