What methods are used to price business loans?
Answer to relevant QuestionsSuppose a bank estimates that the marginal cost of raising loanable funds to make a $10 million loan to one of its corporate customers is 4 percent, its nonfunds operating costs to evaluate and offer this loan are 0.5 ...As a new credit trainee for Evergreen National Bank, you have been asked to evaluate the financial position of Hamilton Steel Castings, which has asked for renewal of and an increase in its six-month credit line. Hamilton ...Five weeks ago, Robin Corporation borrowed from the commercial finance company that employs you as a loan officer. At that time, the decision was made (at your personal urging) to base the loan rate on below-prime market ...What legal protections are available today to protect borrowers against discrimination? Against predatory lending?See if you can determine what APR you are charging a consumer loan customer if you grant the customer a loan for five years payable in monthly installments, and the customer must pay a finance charge of $42.74 per $100.
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