mpany is required ‭ maintain a compensating  balance of P50,000 in a checking account. The company's checking account earns interest  at an annual rate of 2%. Ordinarily the company  maintains  balance of P25,000  in its checking account  for transaction purposes. What is the effective interest rate of the loan?

Q: Compute for the initial carrying amount of the loan. Compute for the effective interest rate on the…

A:

Q: The Blake Company has an outstanding bank loan of P400,000 at an interest rate of 12%.  The company…

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A: To find the remaining balance we need to subtract the amount that is paid and it will be paid on the…

Q: Dina placed Php 18,000 in a 240-day term deposit earning 8.5% per annum. How much will the bank pay…

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Q: Rublin Company applies for a one-year, P1 million loan from RY Bank. The term of the loan requires…

A: Future value  = Present value ×(1+periodic interest rate)^number of periods

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Q: Jhar Industries has borrowed $125,000 under a line-of-credit agreement. While the company normally…

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A: In this we have to determine effective interest rate.

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A: "Since you have posted a multi-part question therefore as per the guidelines we will be solving the…

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A: In order to find the outstanding balance one has to deduct the payment from the loan amount.

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Q: 1. Use the United States Rule to solve the following: On Jan 12, a company borrowed $150,000 at 10%…

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A: Given: Loan amount = P500000 Interest paid on loan = 6% Compulsory compensating balance = P50000…

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Q: A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate…

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Q: Raymond borrowed $3,000.00 from Loans R Us Company. The line of credit agreement provided for…

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first one as per…

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A: Working :-…

Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate…

A: Calculation of Effective rate of interest  EIR = Interest / usable fund x 12/12         = 33200 /…

Q: 2. If a nine-month term deposit at a bank earns a simple interest rate of 9% per annum, how much…

A: Given rate of interest = 9% Required interest = 225 Period = 9 months Interest under simple interest…

Q: ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest…

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Q: A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that…

A: Given information is: Face value of Note = BD 2600 Period = 3 years Compound interest rate = 6% Bank…

Q: 10. A loan of $14,064was repaid at the end of 7 months. What size repayment check​ (principal and​…

A: The conceptual formula in the mathematical equation:

Q: 1. A man borrows Php 64,000 from a loan association. In repaying this debt, he has to pay Php 4000…

A: Simple Interest is calculated directly on the principal for the respective period of time. Simple…

Q: Pearl has trade receivables at the year-end amounting to RM150,000. An irecoverable debt of RM3,500…

A: Solution: balance of allowance account at year end is computed by multiplying the ending trade…

Q: 4) A person deposits an amount of 10,000 riyals in a bank at a vehicle driving rate of 6% per annum.…

A: Initial deposit (D) = 10000 r = 6% Final value = 12624.7696 Let n = Duration