A pawnshop will lend $2,500 for 45 days at a cost of $35 interest. What is the effective rate of interest?
Answer to relevant QuestionsSol Pine borrows $5,000 for one year at 13 percent interest. What is the effective rate of interest if the loan is discounted?McGriff Dog Food Company normally takes 27 days to pay for average daily credit purchases of $9,530. Its average daily sales are $10,680, and it collects accounts in 32 days.a. What is its net credit position? That is, ...If you borrow $5,300 at $400 interest for one year, what is your effective interest rate for the following payment plans?a. Annual payment.b. Semiannual payments.c. Quarterly payments.d. Monthly payments.Summit Record Company is negotiating with two banks for a $151,000 loan. Fidelity Bank requires a 28 percent compensating balance, discounts the loan, and wants to be paid back in four quarterly payments. Southwest Bank ...Exodus Limousine Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 50 years. Compute the current price of the bonds if the percent yield to maturity is:a. 5 percent.b. 15 percent.
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