Question: Objective [2.9] A. You need a simple interest bridge loan to cover the costs of buying a new home while waiting to close on

Objective [2.9] A. You need a simple interest bridge loan to cover

Objective [2.9] A. You need a simple interest bridge loan to cover the costs of buying a new home while waiting to close on your old one. You need to finance $70,000 and bank will charge 7%. How much interest will you pay if you needed the loan for 2 months? Interest =$ (nearest $1) B. Your friend needs a loan of $5,000 for 10 months. You tell him for the simple interest loan service he needs to pay you back $5,333.33. What is the simple interest rate on your friendly loan? Interest Rate= %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Answer A Principal amount70000 Interest rate7 Time period2 months Interes... View full answer

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 Accounting Questions!

The state legislature should appropriate $75,552,000 to cover the costs of the pay equity adjustments indicated by this study. If you are unsure, what additional information do you require before you...

Based on the following, calculate the costs of buying and of leasing a motor vehicle. Purchase Costs Leasing Costs Down payment....................$1,500...............Security...

Based on the following, calculate the costs of buying versus leasing a motor vehicle. Purchase Costs Leasing Costs Down payment: $1,500 Security deposit: $500 Loan payment: $450 for 48 months Lease...

You, CA, have been working for Plener and Partners, Chartered Accountants (P&P), a mid-size CA firm, for three years. You have been assigned a new project for a long-term client of your firm, Oxford...

1. Assume that you sell short 350 shares of a stock when the market price is 32.10-32.15. Your broker demands a 20% haircut for collateral and pays a short rebate of 3%. You borrow all needed cash...

Enviro Facilities Inc. (EFI) is a large, diversified Canadian-controlled private company with several Canadian and U.S. subsidiaries, operating mainly in the waste management and disposal industry....

Jumma Marzooq has obtained a short-term loan from First Cairo Bank. The loan matures in 180 days and is in the amount of US$45,000. Jumma needs the money to cover startup costs in a new business. He...

If you need $20,000 in your bank account in 6 years, how much must be deposited now? The interest rate is 10%, compounded continuously.

Based on the following, calculate the costs of buying and of leasing a motor vehicle. Table Summary: The left half of this table covers purchase costs and consists of 2 columns. The right half of...

On 31 March 2010, for the Bayan Cafe was preparing to make adjusting entries in order to prepare the quarterly financial statements. 31 March 2010 falls on a Wednesday. Based on the following...

Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1, the beginning of its fiscal year, are given below: Supreme Videos,...

Americans face greater financial barriers in accessing careinsurance deductibles, copayments, and out-of-pocket expensesthan do those in other high-income countries (Schoen et al., 2009b,2010,2011)...

Compute the Riemann sum S43 to estimate the double integral of f(x, y) = 9xy over R = [1,5] [1,2.5]. Use the regular partition and upper-right vertices of the sub-rectangles as sample points. (Give...

3. (18 points) A student earned the following grades in her college classes during a particular semester. B+ C- D+ A C A- These courses had the corresponding credit hours listed below. 3 4 2 1 4 3...

TravThe travel agency is planning a trip to England for 1 0 0 members of a college faculty. The plane fare is $ 5 0 0 within an additional charge of $ 1 0 for each cancellation. What is the number of...

Name a manager that works in the government or public sector: the management issues they face, how they deal with those issues, what theory and tools they use to help them in dealing with them

oppes que s e previous altem Required information The following information applies to the questions displayed below] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first...

Where are the olfactory sensory neurons, and why is that site poorly suited for their job?

The local urgent care clinic employs two physicians and a physicians assistant who treat patients. On average, each patient requires about 15 minutes per visit. The clinic is open for 8 hours per day...

Explain market-based pricing and explain where managers and accountants can find information that would help them set prices using this type of approach.

Describe how income taxes affect the cash flows of a strategic investment.

A loan at 6% compounded semiannually requires equal monthly payments. What is the value of c? What is the approximate value of the periodic interest rate for one payment interval? Will the correct...

How much larger will the value of an RRSP be at the end of 25 years if the RRSP earns 9% compounded monthly instead of 9% compounded annually? In both cases a contribution of $1000 is made at the end...

What is the future value eight years from now of each of the following cash-flow streams if money can earn 9% compounded semiannually? a. A single payment of $5000 today. b. An ordinary annuity...