Miguel received a loan of $10,000 at 4.50% compounded quarterly. He had to make payments at the end of every quarter for a period of 1 year to settle the loan. a. Calculate the size of payments. b. Fill in the amortization schedule, rounding the answers to two decimal places. Payment Number Amount Paid Interest Portion Principal Portion Principal Balance 0 $10,000.00 1 2 3 4 Total
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.
OLA #8.1
Miguel received a loan of $10,000 at 4.50% compounded quarterly. He had to make payments at the end of every quarter for a period of 1 year to settle the loan.
a. Calculate the size of payments.
Payment Number
|
Amount Paid
|
Interest Portion
|
Principal Portion
|
Principal Balance
|
0
|
$10,000.00
|
|||
1
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|
|
Total
|
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images