Vroom Motorcycle Company is borrowing $30,000 from First Prairie Bank. The total interest charge is $9,000. The
Question:
Vroom Motorcycle Company is borrowing $30,000 from First Prairie Bank. The total interest charge is $9,000. The loan will be paid by making equal monthly payments for the next three years. What is the annual rate of interest on this instlalment loan?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
R INSTALL R INSTALL 2x An...View the full answer
Answered By
Morgan Njeri
Very Versatile especially in expressing Ideas in writings.
Passionate on my technical knowledge delivery.
Able to multitask and able to perform under pressure by handling multiple challenges that require time sensitive solution.
Writting articles and video editing.
Revise written materials to meet personal standards and satisfy clients demand.
Help Online Students with their course work.
4.90+
12+ Reviews
38+ Question Solved
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Question Posted:
Students also viewed these Business questions
-
The following items were selected from among the transactions completed by Wiggins Manufacturing during the current year: Apr. 7 Borrowed $30,000 from First Financial Corporation, issuing a 60-day,...
-
Lewis and Clark Camping Supplies Inc. is borrowing $51,000 from Western State Bank. The total interest is $15,700. The loan will be paid by making equal monthly payments for the next three years....
-
Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal monthly payments for five years. Interest is 9% compounded monthly. (a) What is the size of the monthly...
-
A research laboratory receives delivery of a new custom-made cylindrical thin-wall pressure vessel. The pressure vessel has inner radius R = 300 mm, and wall thickness t = 10 mm. The vessel is made...
-
In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing more than potential GDP increases? What is the result of aggregate demand increasing less...
-
According to www.meretrix.com, traffic fatalities occur at the rate of 1.32 fatal accidents per 100 million miles. Find the probability that, during the next 100 million vehicle miles, there will be...
-
Longitudinal vibration of an isotropic, particle-reinforced composite bar may be modeled by using the 1D wave equation (Equation 8.99) if the material is linear elastic. Derive the equation of motion...
-
A simple procedure for measuring surface convection heat transfer coefficients involves coating the surface with a thin layer of material having a precise melting point temperature. The surface is...
-
Using www.land.vic.gov.au look up your current place of abode to gather planning information that might be useful in assessing its future development potential. 2. Write one-page report in WORD...
-
Atwater Chemicals produces an engine additive for machinery. The additive is produced by adding various ingredients to a petroleum-based lubricant. Atwater purchases the lubricant from two suppliers,...
-
Talmud Book Company borrows $16,000 for 30 days at 9 percent interest. What is the dollar cost of the loan?
-
a. Using the data in the income statement and the balance sheet that follow, compute the companys average collection period (ACP) in days. Use a 365-day year when calculating sales per day. b....
-
In what areas do organisations often make policy choices?
-
Financial journalist Joe Nocera observed about the decision of the Federal Reserve and the Treasury not to help save Lehman Brothers: Ever since that weekend, most people, including me, have viewed...
-
One orange juice futures contract is on 15,000 pounds of frozen concentrate. Suppose that in September 2014 a company sells a March 2016 orange juice futures contract for 120 cents per pound. In...
-
Is Michael McAvoys explanation of how the Federal Reserve Bank cities were selected more consistent with a public interest view of how the decision was made or a principal-agent view? Briefly explain.
-
Why did Congress want the member banks to own the Federal Reserve Banks? Does the current relationship between the member banks and the Federal Reserve Banks indicate that Congress achieved its goal?
-
Why do pension funds have vesting periods? Do vesting periods have any advantages to employees relative to a system where new hires are eligible to participate in a pension plan right away?
-
A ball is thrown into the air with an upward velocity of 10 m/s. A short time later, it is caught on its way down, also with a speed of 10 m/s. (a) Draw the velocitytime graph for this situation. (b)...
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
What is the most likely explanation for the use of preferred stock from a corporate viewpoint?
-
A small amount of preferred stock is participating. What would your reaction be if someone said common stock is also participating?
-
During a rights offering, the underlying stock is said to sell rights-on and ex-rights. Explain the meaning of these terms and their significance to current stockholders and potential stockholders.
-
This project requires an investment in fixed assets, at time 0, of 44,000,000. Assets will be depreciated straight line in 5 years. This project has a 4 year life. The revenues for each of the 4...
-
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year - end, the Work in Process Inventory account shows the following. Work in Process Inventory Date Explanation...
-
T-bill with a $10,000 par has 174 days until maturity. The T-bill has a bank discount bid quote of 2.208% and ask quote of 2.198%. What is the return on the investment in this T-bill if the trader...
Study smarter with the SolutionInn App