amika Harms needs $18,000 to prepare her web-page design business for opening. Her bank will loan her the money at a banker's discount rate of 9.2% for 195 days. Find the face value of the note so that Ms. Harms will have the required $18.000. Use banker's interest of 360 day

amika Harms needs $18,000 to prepare her web-page design business for opening. Her bank will loan her the money at a banker's discount rate of 9.2% for 195 days. Find the face value of the note so that Ms. Harms will have the required $18.000. Use banker's interest of 360 day

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 32P

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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Tamika Harms needs $18,000 to prepare her web-page design business for opening. Her bank will loan her the money at a banker's discount rate of 9.2% for 195 days. Find the face value of the note so that Ms. Harms will have the required $18.000. Use banker's interest of 360 days

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