How would the effective annual interest rate for Problem 27 change if the bank charged a 1%
Question:
In Problem 27, determine the effective annual interest rate on a $75,000 short-term loan, with a term of one year and a nominal interest rate of 12%. The bank discounts the interest.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (17 reviews)
From Problem 27 I 9000 The closing costs are 750 75000 001 The interest ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Construction accounting and financial management
ISBN: 978-0135017111
2nd Edition
Authors: Steven j. Peterson
Question Posted:
Students also viewed these Finance questions
-
How would the effective annual interest rate for Problem 28 change if the bank charged $1,000 in closing costs? In Problem 28, determine the effective annual interest rate on a $100,000 short-term...
-
Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the prices and income are pr 3, Pg 5 and I = 50. Let s, and sy be the shares of income spent on good X and good Y,...
-
The effective annual interest rate is given to be 19.2%. What is the nominal interest rate per year (r) if continuous compounding is being used? Choose the closest answer below. (a) 19.83% (b) 18.55%...
-
How many of these lines have a compiler error? A. 0 B. 1 C. 2 D. 3 E. 4 F. 5 20: var list List.of ('a', 'c', 'e'); 21: Char letter1 = list.get(0); 22: char letter2 = list.get(0); 23: int letter3 =...
-
In Fig. 9-61, a ball of mass m = 60 g is shot with speed vi = 22 m/s into the barrel of a spring gun of mass M = 240 g initially at rest on a frictionless surface. The ball sticks in the barrel at...
-
Which of the following is the most appropriate description of cash discount? (a) A reduction in price permitted when items are purchased in bulk (b) A reduction permitted for inducing someone to pay...
-
A \(2000-\mathrm{kg}\) car burns gasoline with \(25 \%\) efficiency. Accelerating from rest, how fast would this car go upon burning \(0.040 \mathrm{~L}\) of gasoline if \(1.0 \mathrm{~L}\) of...
-
The contribution margin income statement of Margot Coffee for February follows: Margot Coffee sells three small coffees for every large coffee. A small coffee sells for $ 3.00, with a variable...
-
12. If the velocity-time graph has the shape AMB, what would be the shape of the corresponding acceleration-time graph? (A) a (B) (C) A (D) a A M B time(t)
-
On December 31, 20X1, the Stockholders Equity section of Mercedes Corporation was as follows: Common stock, par value $5; authorized 30,000 shares; issued and outstanding, 9,000 shares...
-
Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days and a nominal interest rate of 8%. The bank discounts the interest.
-
How much interest would be charged on a line of credit that charges a monthly interest rate of 0.75% if the average daily balance for the month were $26,200?
-
This problem requires you to access PCAOB Auditing Standard AS 2110, Identifying and Assessing Risks of Material Misstatements (pcaobus.org). Use this standard to answer each of the questions below....
-
Acme Corporation is a manufacturing company that produces a variety of products for the consumer market. The company has been struggling to compete with foreign competition in recent years, and its...
-
What sales compensation plan would be appropriate for the two distinct environments? What are likely consequences to the business by adopting a misaligned/misguided sales compensation plan? You have...
-
What is the reactor volume & area for acid nitric production by ostwald process? please state the answer with reference.
-
A box of Mr. Phipps Tater Crisps is supposed to contain 156 grams of potato chips. On the side of the box it says "This package is sold by weight, not by volume. Packed as full as practicable by...
-
Convert 57EC to decimal notation. 16 10
-
Crosses involving parents that are heterozygous for two traits (AaBb x AaBb) lead to offspring with phenotypic ratios close to _______. a.1:2:1 b.1:1:1:1 c.3:1 d. 9:3:3:1
-
Describe a job you have had in the past or a job you are very familiar with. Indicate the negative aspects of the job and how it could be improved with current human resource management techniques.
-
Being asked to develop a plan to increase international sales of a product is an example of the types of ____________ problems that managers must be prepared to deal with. (a) routine (b)...
-
Niendorf Incorporated needs to raise $25 million to construct production facilities for a new type of diskette drive. The firms straight nonconvertible debentures currently yield 14 percent. Its...
-
Niendorf Incorporated needs to raise $25 million to construct production facilities for a new type of diskette drive. The firms straight nonconvertible debentures currently yield 14 percent. Its...
-
Define each of the following terms: a. Working capital; net working capital; net operating working capital b. Inventory conversion period; receivables collection period; payables deferral period;...
-
An analysis of the activities needed to produce each product has been conducted. In addition, estimates have been developed. These are in the table below. Match the OH rate with the activity for each...
-
Service business 1. You are required to form a small business (Service business) 2. Explain the name and nature of the business, location, mission and objectives of the company. Assume the business...
-
Cost of utilities Cost per month (In dollars) $20,000 4. The cost of utilities depends on how many wards the hospital needs to use during a particular month. During months with activity under 2,000...
Study smarter with the SolutionInn App