Homework Answers
amount received net=40*1000000*(1-5%)=38000000
interest cost per month=40*1000000*.616%=246400
effective annual rate is
=(1+(246400/38000000))^12-1
=(1+0.6484%)^12-1
=8.05%
the above is answer..
Add Answer to:
The York Company has arranged a line of credit that allows it to borrow up to...
Yoo, Inc., has arranged a line of credit that allows it to borrow up to $40...
Yoo, Inc., has arranged a line of credit that allows it to borrow up to $40 million at any time. The interest rate is .616 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. If the company needs $16 million for 5 months, how much will it pay in interest? Multiple Choice $623,636.01 $525,167.17 $583,519.08 $748,363.22 $498,908.81
Yoo, Inc., has arranged a line of credit that allows it to borrow up to $48...
Yoo, Inc., has arranged a line of credit that allows it to borrow up to $48 million at any time. The interest rate is 624 percent per month. Additionally, the company must deposit 6 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line of credit loans. If the company needs $24 million for 5 months, how much will it pay in interest? Muriple Choice O $750,203 52 $750,2030 O $5,20352 Oo...
you've worked on a line of credit arrangement that allows you to borrow up to 50...
you've worked on a line of credit arrangement that allows you to borrow up to 50 million at a time. the interest rate is .46 percent per month. In addition, 6 percent of the amount that you borrow must be deposited in a non-interest bearing account. Assume that your bank uses compound interest on its lines of credit loans. What is the effective annual interest rate on this lending arrangement?
You've worked out a line of credit arrangement that allows you to borrow up to $35...
You've worked out a line of credit arrangement that allows you to borrow up to $35 million at any time. The interest rate is .52 percent per month. In addition, 2.5 percent of the amount that you borrow must be deposited in a non-interest-bearing account. Assume your bank uses compound interest on its line of credit loans. What is the effective annual interest rate on this lending arrangement?
You have worked on a line of credit arrangement that allows you to borrow up to...
You have worked on a line of credit arrangement that allows you to borrow up to $35 million at any time. The interest rate is .52 percent per month. In addition, 2.5 percent of the amount that you borrow must be deposited in a non interest bearing account. Assume your bank uses compound interest on its line of credit loans. What is the effective annual interest rate on this lending arrangement? Seleccione una: O a. 6.72 percent O b. 6.94...
You’ve worked out a line of credit arrangement that allows you to borrow up to $55...
You’ve worked out a line of credit arrangement that allows you
to borrow up to $55 million at any time. The interest rate is .47
percent per month. In addition, 4 percent of the amount that you
borrow must be deposited in a non-interest-bearing account. Assume
that your bank uses compound interest on its line of credit
loans.
a.
What is the effective annual interest rate on this lending
arrangement? (Do not round intermediate calculations and
enter your answer as...
You’ve worked out a line of credit arrangement that allows you to borrow up to $40...
You’ve worked out a line of credit arrangement that allows you to borrow up to $40 million at any time. The interest rate is .52 percent per month. In addition, 6 percent of the amount that you borrow must be deposited in a non-interest-bearing account. Assume that your bank uses compound interest on its line of credit loans. a. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as...
You've worked out a line of credit arrangement that allows you to borrow up to $60...
You've worked out a line of credit arrangement that allows you to borrow up to $60 million at any time. The interest rate is .60 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a non-interest-bearing account. Assume that your bank uses compound interest on its line of credit loans. a. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as...
You've worked out a line of credit arrangement that allows you to borrow up to $45...
You've worked out a line of credit arrangement that allows you to borrow up to $45 million at any time. The interest rate is .49 percent per month. In addition, 6 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line of credit loans. a. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations. Enter your answer as a...
Houston Enterprises has a line of credit with Capital One that allows Houston to borrow up...
Houston Enterprises has a line of credit with Capital One that allows Houston to borrow up to $350,000 at an interest rate of 5% However, Houston must keep a compensating balance of 10% of any amount borrowed on deposit at Capital One Houston Enterprises does not normally keep a cash balance account with Capital One. What is the effective annual cost of credit (round to nearest.01 percent)? a.5 93% 6.5.84% 0.5.64% 0556%
Yoo, Inc., has arranged a line of credit that allows it to borrow up to $48 million at any time. The interest rate is 624 percent per month. Additionally, the company must deposit 6 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line of credit loans. If the company needs $24 million for 5 months, how much will it pay in interest? Muriple Choice O $750,203 52 $750,2030 O $5,20352 Oo...
You have worked on a line of credit arrangement that allows you to borrow up to $35 million at any time. The interest rate is .52 percent per month. In addition, 2.5 percent of the amount that you borrow must be deposited in a non interest bearing account. Assume your bank uses compound interest on its line of credit loans. What is the effective annual interest rate on this lending arrangement? Seleccione una: O a. 6.72 percent O b. 6.94...
You’ve worked out a line of credit arrangement that allows you
to borrow up to $55 million at any time. The interest rate is .47
percent per month. In addition, 4 percent of the amount that you
borrow must be deposited in a non-interest-bearing account. Assume
that your bank uses compound interest on its line of credit
loans.
a.
What is the effective annual interest rate on this lending
arrangement? (Do not round intermediate calculations and
enter your answer as...
You've worked out a line of credit arrangement that allows you to borrow up to $60 million at any time. The interest rate is .60 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a non-interest-bearing account. Assume that your bank uses compound interest on its line of credit loans. a. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as...
You've worked out a line of credit arrangement that allows you to borrow up to $45 million at any time. The interest rate is .49 percent per month. In addition, 6 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line of credit loans. a. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations. Enter your answer as a...
Houston Enterprises has a line of credit with Capital One that allows Houston to borrow up to $350,000 at an interest rate of 5% However, Houston must keep a compensating balance of 10% of any amount borrowed on deposit at Capital One Houston Enterprises does not normally keep a cash balance account with Capital One. What is the effective annual cost of credit (round to nearest.01 percent)? a.5 93% 6.5.84% 0.5.64% 0556%
Most questions answered within 3 hours.
-
Magnesium and nitrogen react in a combination reaction to
produce magnesium nitride. 3 Mg + N2...
asked 26 seconds ago -
A martial artist is practicing breaking 5 boards. He is able to
break aboard with probability...
asked 5 minutes ago -
The rate constant of a first-order reaction is 2.95 × 10−4 s−1
at 350.° C. If...
asked 8 minutes ago -
implement a class called PiggyBank that will be used to
represent a collection of coins. Functionality...
asked 10 seconds from now -
2. Use the following information in the table to answer the
following questions. (Numbers are in...
asked 5 minutes ago -
The fuel economy of a 2011 Lexus RX 350 2wd 6 cylinder 3.5 L
automatic 5...
asked 13 minutes ago -
i.
the synthesized compund 2-bromo-butanal i have a IR peak at about
3200 and one at...
asked 13 minutes ago -
A
752 mL sample of water was placed in a 1000 gram pan of aluminum.
The...
asked 25 minutes ago -
1.In the context of chelation, what does binding strength mean?
What happens at the molecular level...
asked 18 minutes ago -
Describe two obstacles that makes fixing atmospheric nitrogen
difficult.
asked 37 minutes ago -
Evelyn incorporates her sole proprietorship, transferring it to
newly formed Papaya Corporation. The assets transferred have...
asked 23 minutes ago -
Assume that in a hydrogen atom, the electron circles the nucleus
in a circle of radius...
asked 32 minutes ago