Your bank will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of interest?
Answer to relevant QuestionsA pawnshop will lend $2,500 for 45 days at a cost of $35 interest. What is the effective rate of interest?Talmud Book Company borrows $24,900 for 60 days at 12 percent interest. What is the dollar cost of theloan?Your company plans to borrow $13 million for 12 months, and your banker gives you a stated rate of 24 percent interest. You would like to know the effective rate of interest for the following types of loans. (Each of the ...Harper Engine Company needs $631,000 to take a cash discount of 2.5/20, net 75. A banker will loan the money for 55 days at an interest cost of $13,300.a. What is the effective rate on the bank loan?b. How much would it cost ...Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is:a. 7 percent.b. 10 percent.c. 13 percent.
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