G. A Man borrowed P5,000 from a bank and agreed to pay the loan at the end of 9 months. The bank discounted the loan gave him P4,000 in cash. CO2 16. What was the rate of discount? a. 2% CO2 17. What was the rate of interest? a. 25% CO2 18. What was the rate of interest for one year? Б. 12% C. 13% d. none of the above Б. 22% c. 23% d. none of the above a. 3% b. 34% c. 33% d. none of the above

G. A Man borrowed P5,000 from a bank and agreed to pay the loan at the end of 9 months. The bank discounted the loan gave him P4,000 in cash. CO2 16. What was the rate of discount? a. 2% CO2 17. What was the rate of interest? a. 25% CO2 18. What was the rate of interest for one year? Б. 12% C. 13% d. none of the above Б. 22% c. 23% d. none of the above a. 3% b. 34% c. 33% d. none of the above

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 4P: Gifts Galore Inc. borrowed 1.5 million from National City Bank. The loan was made at a simple annual...

See similar textbooks

Similar questions

Gifts Galore Inc. borrowed 1.5 million from National City Bank. The loan was made at a simple annual interest rate of 9% a year for 3 months. A 20% compensating balance requirement raised the effective interest rate. a. The nominal annual rate on the loan was 11.25%. What is the true effective rate? b. What would be the effective cost of the loan if the note required discount interest? c. What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments?
Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. $250,000 B. $10,000 C. $252,500 D. $2,500
Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%.How much was the interest?$Correct State your result to the nearest penny.How much did Ken receive from the bank?$Correct State your result to the nearest penny.What was the actual rate of interest?
2. C savings deposit of P7,000 earns a simple interest of 5%. How much is the interest for 9 months? 3. B borrowed from his friend, Mark, P9,000. He repaid the P9,600 after 15 months. What was the simple interest rate?
Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to pay the principal at the end of 9 months. If the corresponding discount rate or often referred toas the banker's discount is 13.73%, what is the amount borrowed?
Stacy borrowed $2700 from the bank for 9 months. The bank discounted the loan at 3.1%.How much was the interest?$ State your result to the nearest penny.How much did Stacy receive from the bank?$ State your result to the nearest penny.What was the actual rate of interest?% State your result to the nearest hundredth of a percent. Not use excel
A bank makes a loan of $1,000,000 at a rate of 6% p.a. It also requires a compensating balance of 5%. What is the effective cost to the borrower? 6.05% 6.25% 6.32% 6.45% You invest $10,000 in a 270-day CD at a rate of 6%, compounded daily. What is the amount you receive at maturity? $10,460.24 $10,600.22 $11,200.35 $11,345.48
Mf3. : An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Interest revenue for a bank in period 1 is: An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Principal, paid in the fourth period, is: Outstanding loan amount is USD 17,000.00. Annuity is USD 4,315.27, interest rate is 18%. The amount of principal, paid in the given period is: Outstanding loan amount is USD 22,000.00. Annual interest rate is 11%. Interest is paid at the end of each year. In the given period bank received USD 4,300.00 of principal payment. The annuity amount is:
BB&C bank has agreed to lend you $30,000 today, but you must repay $42,135 in 3 years. What rate is the bank charging you? a. 12% b. 13% c. 11% d. 10%
A man borrowed Php 6,000 from a bank and agreed to pay the loan at the end of 10 months. The bank discounted the loan and gave him P4,800 in cash. (a) What was the rate of discount? (b) What was the rate of interest? (c) What was the rate of interest for one year?
An amount was borrowed from a bank at a simple interest rate of 12.41% and paid after 5 years and 7 months. What is the discount rate? If the paid amount is P33,874, how much money was borrowed? If the total accumulated interest is P10,845, what amount was paid?
1. Sol Sib borrowed P14,000 for 10 months from a rural bank. The banker discounts the note at 8%, Find the discount and the proceeds.