Best Buy needs $500000 to payoff a supplier immediately: 2) Inventory Loan- lend $500K secured by inventory

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Best Buy needs $500000 to payoff a supplier immediately:

2) Inventory Loan- lend $500K secured by inventory

Annual Rate base on loan amount 10%

Field warehouse costs $1k/mth $1000 per month

Questions:

What is interest cost over 3 months?

What is ware house costs over 3 months?

What is the rate?

What is effetive rate?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Jun 15, 2023 12:02 AM

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Best Buy needs $500000 to payoff a supplier immediately: 2) Inventory Loan- lend $500K secured by inventory

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To calculate the interest cost over 3 months for the inventory loan of 500000 with an annual interes... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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