Problem 2-17 Margin Interest (LO3, CFA2) Suppose you take out a margin loan for $75,000. The rate you pay is an effective rate of 8.9 percent. If you repay the loan in six months, or 180 days, how much interest will you pay? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Interest S 3,266.37

Problem 2-17 Margin Interest (LO3, CFA2) Suppose you take out a margin loan for $75,000. The rate you pay is an effective rate of 8.9 percent. If you repay the loan in six months, or 180 days, how much interest will you pay? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Interest S 3,266.37

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter5: Time Value Of Money

Section: Chapter Questions

Problem 27P: EFFECTIVE VERSUS NOMINAL INTEREST RATES Bank A pays 4% interest compounded annually on deposits,...

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EFFECTIVE VERSUS NOMINAL INTEREST RATES Bank A pays 4% interest compounded annually on deposits, while Bank B pays 35% compounded daily. a. Based on the EAR (or EFF%), which hank should you use? b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
f2. Subject :- Accounting Consider a $25,000, three-year loan at an interest rate of 5%, payments to be made monthly. What is the monthly payment using add-on interest?
H3. Mary Jones recently obtained an equipment loan from a local bank. The loan is for $34,000 with a nominal interest rate of 10%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)? Do not round intermediate calculations. Round your answer to two decimal places. Show proper step by step calculation
Q1: If a loan of 12.5 million is made for a period of 33 days at a rate of 8,25% per annum, what is the total amount repayable at the end of the period? Assume 365/365 days in the year. 12,593,236.30 12,583,236.30 10,573,287.67 10,853,25.52 which one is correct please help.
D3) Finance The Assured Independence Bank has offered to lend you $200,000 on a line of credit. Interest is charged at 11% and there is a commitment fee of $1,500. If the payment terms are 2/10 n45 what is the cost of this loan? Express the cost of this option as a simple interest rate (%+2 decimal places)
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Q3 Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $16,000 not due for three years. The interest rate on the note is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: ? n = ? i = ? Present Value: ? Step 2: Convert the Annuity to a Single Sum: Payment: ? n = ? i = ? Present Value: ?
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Problem 4-19 Calculating Number of Periods One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $500 per month, You will charge 1.40 percent per month interest on the overdue balance. If the current balance is $13,000, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
#2 Simple Interest 2. A loan of P5,000 is made for a period of 15 months at a simple interest rate of 15%. What future amount is due at the end of the loan period?
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