Question: a. What interest rate would make it worthwhile to incur a compensating balance of $14,000 in order to get a 1-percent lower interest rate on

a. What interest rate would make it worthwhile to incur a

a. What interest rate would make it worthwhile to incur a compensating balance of $14,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $245,000? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Interest rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

20. ADVANCED TOPIC: Figure the effect size for each main and interaction effect for problems (a) 17a, (b) 17b, (c) 18, and (d) 19.

a. What interest rate would make it worthwhile to incur a compensating balance of $15,000 in order to get a 1-percent low interest rate on a 1-year, pure discount loan of $250,000 ? b. Is it worth...

a. What interest rate would make it worthwhile to incur a compensating balance of $26,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $305,000 ? b. Is it worth...

a. What interest rate would make it worthwhile to incur a compensating balance of $12,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $235,000 ? b. Is it worth...

a. What interest rate would make it worthwhile to incur a compensating balance of $15,000 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $225,000? b. Is it...

What interest rate would make it worthwhile to incur a compensating balance of $ 1 5 , 5 0 0 in order to get a 0 . 6 5 - percent lower interest rate on a 2 - year, pure discount loan of $ 2 3 0 , 0 0...

a. What interest rate would make it worthwhile to incur a compensating balance of $12,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $200,000? b. Is it...

a. What interest rate would make it worthwhile to incur a compensating balance of $16,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $255,000? (Negative amount...

What interest rate would make it worthwhile to incur a compensating balance of $25,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $300,000? (Negative amount...

10. What interest rate would make it worthwhile to incur a compensating balance of $12,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $235,000? (Negative...

Calculating payments the Thunder Dan Corporation??s purchases from suppliers in a quarter are equal to 75 percent of the next quarter??s forecast sales. The payables period is 60 days. Wages, taxes,...

An experimenter feels that observations from population A have a standard deviation no larger than 10.0 and that observations from population B have a standard deviation no larger than 15.0. If the...

Question 2 5 If the date of an entity's financial statements is December 3 1 , the date of the auditor's report is February 2 0 , is February 2 2 , which of the following is considered a subsequent...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...