# Question: Tinker Inc finances its seasonal working capital need with short term

Tinker, Inc. finances its seasonal working capital need with short-term bank loans. Management plans to borrow $65,000 for a year. The bank has offered the company a 3.5 percent discounted loan with a 1.5 percent origination fee. What are the interest payment and the origination fee required by the loan? What is the rate of interest charged by the bank?

**View Solution:**## Answer to relevant Questions

Repeat Problem 1 to determine the percentage return on your investment but in this case suppose the price of the stock falls to $40 per share. What generalization can be inferred from your answers to Problems 1 and ...You can borrow $5,000 for 60 days with an interest payment of $125. What is the simple rate of interest? What is the compound rate of interest? Dash Construction needs to borrow $200,000 for 45 days in order to take advantage of the cash discount of 3/10, n55 offered by a supplier. Dash Construction can borrow the funds from a bank with an interest payment of ...A five-year $100,000 term loan has an interest rate of 7 percent on the declining balance. What are the equal annual payments required to pay interest and principal on the loan? Construct a table showing the declining ...The price of a stock is $39, and a six-month call with a strike price of $35 sells for $8. a. What is the option's intrinsic value? b. What is the option's time premium? c. If the price of the stock rises, what happens to ...Post your question