A) Calculate the annual effective cost of a $21,743 loan with an APR of 5.76%, compounded...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A) Calculate the annual effective cost of a $21,743 loan with an APR of 5.76%, compounded annually, with a 1.65% loan origination fee NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign. B) Company A wants to raise $1,000,000 using three-month commercial paper. The net proceeds to the bank will be $952,839. What is the effective annual rate of this financing for the company? NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign. A) Calculate the annual effective cost of a $21,743 loan with an APR of 5.76%, compounded annually, with a 1.65% loan origination fee NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign. B) Company A wants to raise $1,000,000 using three-month commercial paper. The net proceeds to the bank will be $952,839. What is the effective annual rate of this financing for the company? NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
What is the monthly periodic rate on a loan with an APR of 19.5%?
-
A bank offers a 24-month installment loan with an APR of 10.5%. Martha wishes to use the loan to finance a sofa for $1,000. After using Table 13-1 from your text to find the finance charge, calculate...
-
Ryan wants to take out a $520,000 loan with an APR of 4.15% for 20 years. He can purchase a discount point for 1% of his principal that will decrease his APR by 0.125%. If Ryan purchases 3 points,...
-
A data analyst decided to do all design work from home and wants to create a home office. The analyst needs a new computer for $1,900 and printer/scanner for $250. A vendor offers a financing option...
-
What is adese, and why is it a problem in advertising copy?
-
Rank the following molecules from least oxidized to most oxidized: Ethane Ethanol || - Acetaldehyde Acetic acid
-
Dan Cryers checkbook lists the following: Dan Cryers October bank statement shows the following: Requirements 1. Prepare Dan Cryers bank reconciliation on October 31, 2010. How much cash does Dan...
-
Grim Corporation has income and expenses for its current fiscal year, recorded under generally accepted accounting principles, as shown in the following schedule. In addition, a review of Grims books...
-
James Bond Pty Ltd uses 960 tonnes of a particular chemical each year. Monthly usage fluctuates between 70 tonnes and 90 tonnes. The lead time for each order is six weeks and the economic order...
-
Colt Company reports pretax financial income of $143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are $295,000), the following items are included in this...
-
2. Consider the following stress state 1- - 0 0 00 00 1]... where do is some stress value and a is a dimensionless parameter a (0, 1). (a) Calculate the principal invariants of the stress tensor: I =...
-
Write a formal proof that the following statement is true. For all integers m and n, if m is even and n is odd, then 3n-n + 2m is even. Make sure to use the formal definitions of even and odd. Do not...
-
Can you run the R code and show results? Can you please repeat what we did in the Portfolio Optimization.R file, but use Netflix, Coca-Cola, Nike, Ford and Starbucks What is your best sharp ratio? Is...
-
Using annual compounding, calculate the valuations for the following bonds: a) 5%, 20-year bond priced to yield 3% b) 3%, 10-year bond priced to yield 6%
-
5. Two people are standing at the entrance to an elevator. At the same time as one person starts walking away from the elevator at a rate of 2 ft/s, the other person rides the elevator up at a rate...
-
How do reinforcement learning algorithms, inspired by behavioral psychology, contribute to adaptive decision-making in dynamic environments through continuous interaction and feedback loops ?
-
you are going to create a Binary Search Tree (BST) with a minimal interface. You don't have to balance the tree. In fact, don't even try it yet. We are creating a very basic tree class. For the sake...
-
As of January 1, 2018, Room Designs, Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January...
-
Margoles Publishing recently completed its IPO. The stock was offered at a price of $14 per share. On the first day of trading, the stock closed at $19 per share. a. What was the initial return on...
-
You are planning to invest $5000 in an account earning 9% per year for retirement. a. If you put the $5000 in an account at age 23, and withdraw it 42 years later, how much will you have? b. If you...
-
You are buying a house and the mortgage company offers to let you pay a point (1% of the total amount of the loan) to reduce your APR from 6.5% to 6.25% on your $400,000, 30-year mortgage with...
-
Recording effects of transactions in T-accounts Record the transactions below for Amena Company by recording debit and credit amounts directly in the following T-accounts: Cash; Accounts Receivable;...
-
Identifying type and normal balances of accounts For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) enter debit (Dr.) or credit (Cr.)...
-
Preparing a trial balance After recording the transactions of Exercise 3-2 in T-accounts and calculating the ending balance of each account, prepare a trial balance. Use May 31, 2008, as its report...
Study smarter with the SolutionInn App