Homework Answers
SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE
Add Answer to:
4. Cost of Bank Loans. Del Hawley, owner of Hawley's Hardware, is negotiating with First City...
11. Bank loans Short-term financing through bank loans Consider this case: Gizmonic Institute Corp. needs to...
11. Bank loans Short-term financing through bank loans Consider this case: Gizmonic Institute Corp. needs to take out a one-year bank loan of $600,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 10% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 7% add-on interest to be repaid in 12 equal monthly installments. Based on a 360-day...
5. Bank loans Short-term financing through bank loans Consider this case: Central Corp. needs to take...
5. Bank loans Short-term financing through bank loans Consider this case: Central Corp. needs to take out a one-year bank loan of $500,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 9% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 6% add-on interest to be repaid in 12 equal monthly installments. Based on a 360-day year,...
Calculate the effective annual interest rate for a $100,000 simple interest loan with 10% interest due...
Calculate the effective annual interest rate for a $100,000 simple interest loan with 10% interest due at the end of the year and 10% compensating balance. Calculate the effective annual interest rate for a $100,000 discounted loan with 10% interest and 10% compensating balance.
Kerry Corporation must pay $500,000 to its supplier. Kerry's bank has offered a 270-day simple interest...
Kerry Corporation must pay $500,000 to its supplier. Kerry's bank has offered a 270-day simple interest loan with a quoted interest rate of 12 percent. The bank requires a 20 percent compensating balance requirement on business loans. If Kerry currently holds no funds at the lending bank, what is the loan's effective annual rate (rEAR)? In your computations, assume there are 360 days in a year.
Scan Bookkeeping has a $200,000 compensating balance loan with its bank. The terms of the loan...
Scan Bookkeeping has a $200,000 compensating balance loan with its bank. The terms of the loan call for Scan to keep 5% of the loan as a compensating balance and pay interest at an annual rate of 6.50% on the entire amount. If the firm borrows the maximum amount for one year, how much interest is due at the end of the year? A.$10,650 B.$12,375 C.$11,250 D.$13,000
Jamison Inc. needs to raise $500,000 for a nine-month term. Jamison's bank has offered to lend...
Jamison Inc. needs to raise $500,000 for a nine-month term. Jamison's bank has offered to lend Jamison the money at a 8.00% simple interest rate. Jamison will receive the $500,000 upon approval of the loan and will pay back the principal and interest at maturity. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of this loan. Value Interest payment Amount of cash received Annual percentage rate (APR) Effective...
Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans. Currently, the ban...
Discount loan. Up-Front Bank uses discount loans for all its
customers who want one-year loans. Currently, the bank is
providing one-year discount loans at 7.8%.
What is the effective annual rate on these loans? If you were
required to repay $250,000 at the end of the loan for one year,
how much would the bank have given you at the start of the
loan?
P15-5 (similar to) Assigned Media Discount loan. Up-Front Bank uses discount loans for all...
Metrobank offers one-year loans with a 4 percent stated (or base rate), charges a 0.15 percent...
Metrobank offers one-year loans with a 4 percent stated (or base rate), charges a 0.15 percent loan origination fee, imposes a 15 percent compensating balance requirement, and must pay an 8 percent reserve requirement to the Federal Reserve. The loans typically are repaid at maturity. a) If the risk premium for a given customer is 1.5 percent, what is the simple promised interest return on the loan (this is solely just the interest rate)? b) What is the contractually promised...
21. A bank requires 5% compensating balance on business loans and usually requires 1% per month...
21. A bank requires 5% compensating balance on business loans and usually requires 1% per month interest. What is the effective annual rate on a loan which will be paid back after one year? A. 12.19% B. 13.39% C. 14.01% D. none of the above. 22. "M&M proposition 1 with taxes refers to an environment in which corporation pay a flat tax rate, but individuals pay no taxes." A. True B. False
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment include...
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3000 payment at the end of four years. The interest is accrued at an annual nominal rate of discount equal to 5% compounded semiannually. The second loan is repaid by a 4000 payment at the end of five years. The interest is accrued at an annual...
11. Bank loans Short-term financing through bank loans Consider this case: Gizmonic Institute Corp. needs to take out a one-year bank loan of $600,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 10% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 7% add-on interest to be repaid in 12 equal monthly installments. Based on a 360-day...
5. Bank loans Short-term financing through bank loans Consider this case: Central Corp. needs to take out a one-year bank loan of $500,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 9% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 6% add-on interest to be repaid in 12 equal monthly installments. Based on a 360-day year,...
Jamison Inc. needs to raise $500,000 for a nine-month term. Jamison's bank has offered to lend Jamison the money at a 8.00% simple interest rate. Jamison will receive the $500,000 upon approval of the loan and will pay back the principal and interest at maturity. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of this loan. Value Interest payment Amount of cash received Annual percentage rate (APR) Effective...
Discount loan. Up-Front Bank uses discount loans for all its
customers who want one-year loans. Currently, the bank is
providing one-year discount loans at 7.8%.
What is the effective annual rate on these loans? If you were
required to repay $250,000 at the end of the loan for one year,
how much would the bank have given you at the start of the
loan?
P15-5 (similar to) Assigned Media Discount loan. Up-Front Bank uses discount loans for all...
21. A bank requires 5% compensating balance on business loans and usually requires 1% per month interest. What is the effective annual rate on a loan which will be paid back after one year? A. 12.19% B. 13.39% C. 14.01% D. none of the above. 22. "M&M proposition 1 with taxes refers to an environment in which corporation pay a flat tax rate, but individuals pay no taxes." A. True B. False
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3000 payment at the end of four years. The interest is accrued at an annual nominal rate of discount equal to 5% compounded semiannually. The second loan is repaid by a 4000 payment at the end of five years. The interest is accrued at an annual...
Most questions answered within 3 hours.
-
13. a. What is/are the function(s) of SDS (sodium dodecyl
phosphate) when preparing protein samples for...
asked 45 seconds ago -
If 5.23 g of CuNO3 is
dissolved in water to make a 0.800 M solution, what
is the volume of the solution in milliliters?
volume
asked 40 seconds ago -
At a major International Airport, 0.37 of the flights arrive on
time. A sample of 12...
asked 10 minutes ago -
The most abundant isotope of uranium is 238U. All naturally
occurring fluorine is 19F. What is...
asked 8 minutes ago -
AgNO3(aq) + NH4Cl(aq) → AgCl(s) +
NH4NO3(aq)
The concentration of NH4Cl is 0.263 M at the...
asked 14 minutes ago -
What vitamin acts as a coenzyme in cell respiration and is
important in alcohol fermentation?
A....
asked 14 minutes ago -
A manufacturer of electronic kits has found that the mean time
required for novices to assemble...
asked 17 minutes ago -
I need help with this question please. we preformed
EFFECT OF SUBSTITUENTS ON pKa OF CARBOXYLIC...
asked 24 minutes ago -
1. What are stored procedures?
2. What purpose do stored procedures serve?
3. Name and describe...
asked 28 minutes ago -
Calculate the slope of the plot of lnk vs. 1/T
for the reaction. Be sure to...
asked 29 minutes ago -
Suppose X is a random variable whose density is f(x) = cx(1 - x)
for 0...
asked 32 minutes ago -
Below is an ANOVA
summary table. Based on these data, would you follow this ANOVA up...
asked 33 minutes ago