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- ABC Corporation has a daily collection of 180,000 from a selected foreign customer group. The bank offered to accelerate the clearing time of these collections from 8 days to 5 days for a quarterly fee of 1,000. ABC can invested freed cash into a mutual fund to earn 5% annually. How much is the net benefit/cost of this bank service?YY Corporation has daily collections of 130,000 from a selected foreign customer group. The bank offered to accelerate the clearing time of these collections from 8 days to 3 days for a quarterly fee of 1,000. YY can invested freed cash into a mutual fund to earns 5% annually. How much is the net benefit/(cost) of this bank service?João, owner of a small clothing store, found that his company's cash needed funds in the form of money so that his employees' salary commitments could be settled. So the alternative he had at the moment was the discount of duplicates at a bank branch. The amount required for the payment of employees is $35,000.00, the amount held in duplicates is $42,000.00 with a maturity of 60 days. The bank is charging a discount rate of 60% per year. Will John be able to pay the employees? What is the annual interest rate charged by the bank?
- National Co. needs to borrow P300,000 for the next 6 months. The company has a line of credit with a bank that allows the company to borrow funds with a 10% interest rate subject to a 20% of loan compensating balance. Currently, National Co. has no funds on deposit with the bank and will need the loan to cover the compensating balance as well as their other financing needs. How much will National Co. need to borrow?ABC Corporation receives checks from its customers. The total check value averages 700,000 each day. It takes an average of 5 days from deposits for these to clear the bank. If the bank offers to accelerate the 5-day clearing process to 3 days for a monthly fee of 600. If ABC can earn 4% investment income from excess cash, how much is the net annual benefits/cost of this bank offer?James, a manager at the local branch of Millerbank, is required by the Fed to set a reserve ratio of at least 10 percent. He opts to not have any excess reserves. If $500 is deposited into his branch, how much can James legally increase its loans? a.5000 dollars b.200 dollars c.50 dollars d.100 dollars e.450 dollars
- The company decided to borrow a one-time loan of $100,000 in Jan 2023 to launch a marketing campaign to expand the business. The $100,000 is taken from the bank and use in the marketing campaign directly and as such no additional $ is plough back into the cash flow. Given the bank charges 4% interest rate and the company wishes to borrow for 5-year term, add another row for Annual Payment to the bank (SAFELOCK LTD chooses to pay monthly payment, calculate the total 12 monthly payments using the appropriate built-in functions and formula.) Also calculate the Total Bank term payment for the loan assuming the monthly payment scheme, Total Interest for the loan taken.NTA Co. needs to borrow P300,000 for the next 6 months. The company has a line of credit with a bank that allows the company to borrow funds with a 10% interest rate subject to a 20% of loan compensating balance. Currently, NTA Co. has no funds on deposit with the bank and will need the loan to cover the compensating balance as well as their other financing needs. How much will NTA Co. need to borrow?(Table) SCENARIO: Assume that Empathy State Bank begins with the balance sheet shown and is fully loaned-up. Vanessa has a checking account at Empathy State Bank. If she writes a check for $5,000 to pay for her new car and if the bank has a reserve requirement of 5%, this bank's excess reserves will be $5,250. negative; Empathy State Bank will need to acquire $2,250 in reserves. $0; Empathy State Bank will be fully loaned-up. $250.
- Bulldogs Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Wildcats charges Bulldogs P15 for every transaction with the bank. The bank grants 5% annual interest. Bulldogs is contemplation if it will still need to have the cash buffer. How much is the annual savings in annual holding cost of cash for Bulldogs if it will not have a cash buffer?Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a bank. If the amount of bank discount is 354.15, find the amount of the loan.Maris Bank has analyzed the accounts receivable of Anthony Software, Inc. The bank has chosen eight accounts totaling $134,000 that it will accept as collateral. The bank’s terms include a lending rate set at prime 3% and a 2% commission charge. The prime rate currently is 8.5%. Show Solutions and Explanation. A. The bank will adjust the accounts by 10% for returns and allowances. It then will lend up to 85% of the adjusted acceptable collateral. What is the maximum amount that the bank will lend to Anthony Software? (Format: 111,111) B. What is Anthony Software’s effective annual rate of interest if it borrows $100,000 for 12 months? (Note: Assume a 365-day year and a prime rate that remains at 8.5% during the life of the loan.) (Format: 11.1%)