Question: a. What interest rate would make it worthwhile to incur a compensating balance of $17,000 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 $17,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $260,000 ? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) b. Is it worth incurring the compensating balance to obtain the lower 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!

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...

One other stereoisomer of 3-amino-2-butanol is a crystalline solid. Which one?

For a continuous random variable X, P (20 X 40) = 0.15 and P(X. 40) = 0.16. Calculate the following probabilities. a. P(X

Calculate the Cost of Closing stock under FIFO method: 2017 Jan. 1 Opening stock 200 pieces @ ~ 2 each. Purchases Issues Jan. 5 100 pieces @ ~ 2.20 each Jan. 2 150 pieces Jan. 10 150 pieces @ ~ 2.40...

PPE Inc. produces toys for kids from 1 to 3 years old. The toy sales data is shown as follows: ( Take a screenshot of your Excel spreadsheet and paste it to the answer section ) ( 3 0 points ) Period...

Did you use active, concrete, short sentences and paragraphs that provide common words? [E]

Did you base your writing on credible research and secondary evidence?

Did you include all dates, times, and locations for event fact sheets? [yes or no]