You have just earned your mba and have three student loan, Ask an Expert

Finance

You have just earned your MBA and have three student loan balances outstanding. They all mature in 5 years. The Amounts owed and the associated interest rates are shown in the table below. You can also combine these loans ($64,000) into a consolidated loan from the bank at a rate of 7.2% annual interest for a period of 5 years. Should you consolidate these or stay with the three seperate loans? Hint: Weighted average cost of the three loans vs. the consolidated bank loan @7.2%.

Loan 1--Balance Due: $20,000--Annual interest rate 6%

Loan 2--Balance Due: $12,000--Annual Interest rate 9%

Loan 3--Balance Due: $32,000--Annual Interest rate 5%

MUST SHOW WORK IN EASY TO UNDERSTAND DETAIL

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M91339140

Have any Question?Write your Review or question?

Related Questions in Financial Management

Consumer behavior assignment - personality and

Consumer Behavior Assignment - Personality and Lifestyles 1. What are some products that make their appeals primarily to the id? What are some products that make their appeals to the superego? Do products make an appeal ...

Topics to choose frombullfailure of the Topics to choose from • Failure of the

Topics to choose from • Failure of the Originate-to-Distribute Model and the Financial Crisis of 2007-8 • Monoline Insurers and the Subprime Financial Crisis and Problems with Rating Agencies • The Liquidity Crisis and t ...

Answer the following question bullthe importance of

Answer the following Question : • The Importance of Reserves to a Bank • The connection between the availability of mortgage financing and home ownership rates? • Profits and Risks of Off-Balance-Sheet Activities • The S ...

Question under what circumstances are price factors more

Question : Under what circumstances are price factors more important than non-price factors during a source selection? Under what circumstances are non-price factors more important? Use headings to compare and contrast t ...

Lets end the capstone course with the followingthroughout

Let's end the capstone course with the following: Throughout the course, we've applied the Four Frames to the University of Missouri (A) case. Recognizing that all four frames are useful as a lens for evaluating organiza ...

Compose a minimum of 1400 words in which you discuss the

Compose a minimum of 1,400 words in which you discuss the Vera Bradley Case Study. Examine what resources were critical to getting the company off the ground. Elaborate on what conclusions you can draw about the market r ...

Part a-budgeting amp financial analysisassume the following

Part A-Budgeting & Financial Analysis Assume the following data for Spring Break Corp: Statement of Income: Balance Sheet: 2017 ...

Assignment1 read the assigned case hbs case tesla motors

Assignment 1. Read the assigned case: HBS Case Tesla motors (in 2015): Tesla Motors, Inc. 2. Develop a one-page memo (500 words maximum, excluding the title, reference pages and appendices.) to answer these questions: 1. ...

Assignment introduction to businessdirections be sure to

ASSIGNMENT : Introduction to Business Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure ...

Objectivesin this assignment you are expected to develop a

Objectives In this assignment you are expected to develop a business report that will be presented to a senior manager of a law firm. The report should be informative but concise and follows a specific structure that all ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert