ACC00716 Finance: Business Case Studies 1 - Assessment 2

1. TVM and bond valuation questions (1 mark each):

d. Your company is buying new property for the amount given in Table 1. To finance this, the company’s bank has offered an amortized loan at 3.8% APR, quarterly compounding, with 10 years of monthly payments. What quarterly payment will the company have to make on this loan? Assume that the entire property cost is financed and that payments are made at the end of each period.