What is the effective rate of a 15% discounted loan for 90 days, P200,000, with 10% compensating balance? Assume 360 days per year.
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A: Nominal interest rate (r) = 12% Effective interest rate (i) = 14.40% Let the compensating balance as…
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A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: If $14,000 is borrowed for 2 months and $82 is paid, then the annual simple interest rate is ____
A: Interest = p * r * t Interest = $82 principal = $14,000 r = rate of interest t = time in years = 2…
Q: A $26,000 loan is repaid with quarterly payments of $900 at 3.20% compounded semi-annually. How many…
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Q: What is the amount of compensating balance would be required for a nominal interest rate of 12% to…
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Q: A loan of P300,000 is to be repaid in full after 2years. If the interest rate is 9% per annum. How…
A: given, P= p300,000 r=9% m=12 n=2
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A: Given information: 5 year floating rate loan of $10 million
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Q: riod, if a loan of Php 50,000 is made for a riod of 16 months at a rate of 7.5%?
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Q: How much interest will be owed on a loan of P15,500 at the end of 4 years and 7months using 15…
A: Loan amount (P) = P15500 Period (t) = 4 Years and 7 Months = 4+(7/12) = 4+0.583333333333333 =…
Q: A $35,000 loan at 4% compounded quarterly is to be repaid with six equal quarterly payments. The…
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A:
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Q: What are the interest cost and the total amount due on a six-month loan of $1,500 at 13.2 percent…
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Q: A loan of P95000 is borrowed for 240 days at a simple interest rate of 12.3 percent per year. What…
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A: This is simple interest rate problem just deduct interest from the principal amount.
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- Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. 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)?
- Effective Cost of Short-Term Credit Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12% nominal rate; (b) borrow on a 3-month, but renewable on rate with 12 end-of-month payments; or (d) obtain the needed funds by no longer taking discounts and thus increasing its accounts payable. Yonge buys on terms of 1/15, net 60. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?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?