Question: Simmons Corp can borrow from its bank at 17 percent
Simmons Corp. can borrow from its bank at 17 percent to take a cash discount. The terms of the cash discount are 1.5/10, net 45. Should the firm borrow the funds?
Answer to relevant QuestionsYour bank will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of interest?Gulliver Travel Agencies thinks interest rates in Europe are low. The firm borrows euros at 9 percent for one year. During this time period the dollar falls 14 percent against the euro. What is the effective interest rate on ...The treasurer for the Macon Blue Sox baseball team is seeking a $23,600 loan for one year from the 4th National Bank of Macon. The stated interest rate is 10 percent, and there is a 15 percent compensating balance ...Neveready Flashlights Inc. needs $340,000 to take a cash discount of 3/17, net 72. A banker will loan the money for 55 days at an interest cost of $10,400.a. What is the effective rate on the bank loan?b. How much would it ...The Lone Star Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds if the present yield to maturity is:a. 6 percent.b. 9 percent.c. ...
Post your question