A debt of $15,000 with interest at 12% compounded monthly is repaid over 10 years by equal payments made at the end of every three months. a)the size of the periodic payments b)For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? how much interest is paid how much of the principal is repaid what is the loan balance c) For the second payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? how much interest is paid how much of the principal is repaid what is the loan balance
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Q11 A debt of $15,000 with interest at 12% compounded monthly is repaid over 10 years by equal payments made at the end of every three months.
a)the size of the periodic payments
b)For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance?
how much interest is paid
how much of the principal is repaid
what is the loan balance
c) For the second payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance?
how much interest is paid
how much of the principal is repaid
what is the loan balance
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