Suppose you take out a margin loan for $50,000. The rate you pay is an 8.4 percent
Question:
Suppose you take out a margin loan for $50,000. The rate you pay is an 8.4 percent effective rate. If you repay the loan in six months, how much interest will you pay?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
50000 ...View the full answer
Answered By
Wonder Dzidzormenu
As a professional accountant and a teacher, I explain account ing concepts in a more practical way that makes students more connected to the subject.
With over 10 years of teaching accounting , I offer a well constructed , easily understood and in-depth explanations to students questions.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Question Posted:
Students also viewed these Business questions
-
Suppose you take out a 30-year mortgage of $100,000 with a fixed interest rate of 5 percent. You must make 360 equal monthly payments. Write an equation that defines what the payment is.
-
Suppose you take out a $100,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 6%, and to keep things simple, we will assume you make payments on the loan annually at the end...
-
Banks sometimes quote interest rates in the form of "add-on interest." In this case, if a 1-year loan is quoted with a 20% interest rate and you borrow $1,000, then you pay back $1,200. But you make...
-
The Transco Company is considering making and supplying computer-controlled traffic- signal switching boxes to be used throughout Arizona. Transco has estimated the market for its boxes by examining...
-
Push a pin through a small card and place it in the hole of a thread spool. Try to blow the card from the spool by blowing through the hole, as Evan Jones does in one of the chapter-opening photos....
-
If total deductions on a yearly salary of $18 600 amounted to 16 2/3%, how much was deducted?
-
A rock climber accidentally drops a \(4.5-\mathrm{kg}\) backpack, and it falls \(160 \mathrm{~m}\) to the ground below. What is the change in the gravitational potential energy of the system...
-
Financial statements for Bernard Company follow. Required Prepare a horizontal analysis of both the balance sheet and income statement. BERNARD COMPANY Balance Sheets As of December 31 2012 2011...
-
G is an individual GST registrant that files GST returns annually. At the beginning of year 20XX, G incorporated their sole proprietorship into G Inc., a wholly owned subsidiary of G, and registered...
-
There is a lottery with n coupons and n people take part in it. Each person picks exactly one coupon. Coupons are numbered consecutively from 1 to n, n being the maximum ticket number. The winner of...
-
In Problem 13, suppose the call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Calculate your return on investment for each of the following share prices one year...
-
For the classical normal regression model y = X + with no constant term and K regressors, assuming that the true value of is zero, what is the exact expected value of F[K, n K] = (R 2 /K)/[(1 R 2...
-
Discuss the advantages and disadvantages of outsourcing or off shoring jobs. Should a worker in today's economy have any reasonable expectation of job security? Explain your reasoning?
-
What does the following say about economists' efforts to put value on nature? Discuss. Stewardship derives from value. The reason we have jewelry boxes is because diamonds are expensive. The value...
-
Unethical acts are generally committed by unethical people. What are some things companies can do to help ensure that their employees act ethically?
-
What are some reasons why the value of a business other than a small one is generally maximized when it is organized as a corporation?
-
What are five things the auditor should document when performing an ADA?
-
Under what circumstances defer plan? can employees compensation under a nonqualified
-
Let J = 25/a 20/( 2 + 0.01) a z A/m 2 . (a) Find the total current crossing the plane z = 0.2 in the a z direction for < 0.4. (b) Calculate /t. (c) Find the outward current crossing the closed...
-
Graph the following conic sections, labeling vertices, foci, directrices, and asymptotes (if they exist). Give the eccentricity of the curve. Use a graphing utility to check your work. 10 5 + 2 cos 0
-
A STRIPS with 9 years until maturity and a face value of $10,000 is trading for $7,693. What is the yield to maturity?
-
Suppose you are a U.S. investor who is planning to invest $125,000 in Japan. You do so at a starting exchange rate of 84.28/$. Your Japanese investment gains 7 percent, and the ending exchange rate...
-
In the previous problem, what would the total return be if the ending exchange rate were 88.65/$? What does your answer tell you about the importance of currency fluctuations? In the previous problem...
-
Find the LCM for each group of expressions. 1.2x-8x+8 and 3x+27x-30 2. 4x+12x+ 9 and 4x2-9 3. 2x2 18 and 2 5x330x+45x
-
StellarCraft, a space equipment manufacturer, produces three types of space components: "Plasma Thrusters," "Navigation Systems," and "Solar Panels." StellarCraft needs to determine the optimal...
-
If 103 people attend a concert and tickets for adults cost $2.25 while tickets for children cost $1.5 and total receipts for the concert was $179.25, how many of each went to the concert? adults...
Study smarter with the SolutionInn App