Due to your good credit, your bank reduces the interest rate on your $14,000 loan from 9.3%

Question:

Due to your good credit, your bank reduces the interest rate on your $14,000 loan from 9.3% to 7% per year. Thanks to the change, how much will you save in interest this year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

See More Books

Question Posted: Feb 27, 2024 03:07 AM

See More Questions

Firm A is contemplating acquiring firm B by stock payment. In order to comfort the shareholders of firm B, firm A provides contingent value rights (CVR) to shareholders of firm B: each newly issued...
1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
For each problem, show your work steps. A correct answer with no work shown gets half credit (which means you fail the assignment). An incorrect answer with no work receives 0 credit. With time value...
Consider wave-free laminar condensation on a vertical isothermal plate of length L, providing an average heat transfer coefficient of h L . If the plate is divided into N smaller plates, each of...
Read a case "IT Strategy for Jimmy Beans Wool Company". Write a summary. Research and describe at least 3 technologies that could be used to support or enhance the business in the case study.
Show that: (a) The DCT of a length- $N$ sequence $x(n)$ corresponds to the Fourier transform of the length- $2 N$ sequence $\tilde{x}(n)$ consisting of $x(n)$ extended symmetrically; that...
A Sampling Distribution for Gender in the Rock and Roll Hall of Fame Exercise 3.37 tells us that 47 of the 303 inductees to the Rock and Roll Hall of Fame have been female or have included female...
Larrys Lawn Equipment Company gives terms of 2/10, n/30. Larry has annual credit sales of $500,000 and average accounts receivable of $60,000. a. What is Larrys accounts receivable turnover? b. What...
Pancake Village had sales of $1.5 million with depreciation of $350,000 and other operating costs that ran 35% of sales. They paid $180,000 in dividends with a tax rate of 40% and interest expense of...
A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 5.8% interest rate on deposits and loans: a. How much would you have in one year if you...
You expect to have $5000 in one year. A bank is offering loans at 3.5% interest per year. How much can you borrow today?
The sides of a square decrease in length at a rate of 1 m/s. a. At what rate is the area of the square changing when the sides are 5 m long? b. At what rate are the lengths of the diagonals of the...
Indicate whether each of the following statements is true or false by writing T or F in the answer column. Directors and offi cers of corporations can be charged with breach of their duty resulting...
Determine the hydrologic risk of a roadway culvert flooded with 50 years of expected service life designed to carry a 100-year storm.
Indicate whether each of the following statements is true or false by writing T or F in the answer column. Clergy cannot be charged with negligence.
Indicate whether each of the following statements is true or false by writing T or F in the answer column. An architect who designs a building that is later destroyed in a windstorm cannot be charged...
Indicate whether each of the following statements is true or false by writing T or F in the answer column. An insurance agent or broker can be charged with negligence for failing to recommend...
Who receives responsibility reports? What do the reports include?
Consider model (9.18). What is the effect on the model parameter estimates, their standard errors, and the goodness-of-fit statistics when (a) The times at risk are doubled, but the numbers of deaths...
Discounted Payback Concerning discounted payback: a. Describe how the discounted payback period is calculated, and describe the information this measure provides about a sequence of cash flows. What...
Discounted Payback Concerning discounted payback: a. Describe how the discounted payback period is calculated, and describe the information this measure provides about a sequence of cash flows. What...
Discounted Payback Concerning discounted payback: a. Describe how the discounted payback period is calculated, and describe the information this measure provides about a sequence of cash flows. What...
You purchase a margarita truck for $60,000 and pay $10,000 down. You also agree to pay the rest over the next 5 years in monthly payments at 8% percent interest on the unpaid balance. What will be...
If one of the advantages of NPV is that it helps the management of the company in making better decisions by considering the time value of money, then considering the time value of money, is it...
1. How much will you have saved after 6 years by contributing $1,200 at the end of each year if you expect to earn 11% on the investment? Insert your answer. 2. A business owner plans to deposit...

Due to your good credit, your bank reduces the interest rate on your $14,000 loan from 9.3%

Question:

Step by Step Answer:

Heres how to calculate the interest saved on your loan Step 1 ...View the full answer

Fundamentals Of Corporate Finance

Students also viewed these Business questions