To increase its market share, Sole Brother Inc. decided to borrow $5000 from its banker for the
Question:
To increase its market share, Sole Brother Inc. decided to borrow $5000 from its banker for the purchase of newspaper advertising for its shoe retail line. The loan is to be paid in four equal annual payments with 15% interest. The loan is discounted 6 points. The 6 "points" is an additional interest charge of 6% of the loan, deducted immediately. This additional interest 6 %(5000) =$300 means the actual amount received from the $5000 loan is $4700. The $300 additional interest may be deducted as four $75 additional annual interest payments. What is the after-tax interest rate on this loan?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
A 5000 AP 15 4 5000 03503 175150 n 0 1 2 3 4 Loan Balanc...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
What is the motivation for the purchase of an over-the-counter option?
-
The buyer contracted with the seller for the purchase of ribs. After delivery, the buyer refused to pay the contract price, claiming that the ribs arrived in an "off condition." The seller fi led...
-
An installment contract for the purchase of a car requires payments of $252.17 at the end of each month for the next three years. Suppose interest is 8.4% p.a. compounded monthly. (a) What is the...
-
Q3. Modulus of rupture of concrete is a measure of a) flexural tensile strength b) direct tensile strength c) compressive strength d) split tensile strength Q4. For a longitudinal reinforcing bar in...
-
In below Exercises 1 and 2, sketch the lines through the point with the given slopes on the same set of coordinate axes. Point 1. (2,3) Slopes a. 0 b. 1 c. 2 d. -3 2. (-4, 1) a. 3 b. -3 c. 1/2 d....
-
Both organizations featured in the case have been quite successful with their global rollouts. Search the Internet for examples of less-than-thriving global or international system implementations....
-
Visit www.pearsonglobaleditions.com/malhotra to read the video case and view the accompanying video. Marriott: Marketing Research Leads to Expanded Offerings highlights Marriotts success in using...
-
On January 1, 2012, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other...
-
LIFO Liquidation Profit Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the company has had the following purchases and sales of its single inventory item: Year Units...
-
I thought lean production was supposed to make us more efficient commented Ben Carrick, manufacturing vice president of Vorelli Industries. But just look at Junes manufacturing variances for Zets....
-
Sole Brother Inc. is a shoe outlet to a major shoe manufacturing industry located in Chicago. Sole Brother Uses accounts payable as one of its financing sources. Shoes are delivered to Sole Brother...
-
A major industrialized state has a state corporate tax rate of 9.6% of taxable income. If a corporation has a state taxable income of $150,000, what is the total state and federal income tax it must...
-
If linked list having a loop is given. Count the number of nodes in the linked list //Sorts a given list by selection sort //Input: An array A[0..n-1] of orderable elements //Output: List A[0..n-1]...
-
The composite beam (note the internal hinge) shown in Figure 1.1 is subjected to a distributed load and a point load. a) Draw all necessary free-body diagrams using the method of sections and find...
-
2.88 A gate having the shape shown in Fig. P2.88 is located in the vertical side of an open tank containing water. The gate is mounted on a horizontal shaft. (a) When the water level is at the top of...
-
Three rods are sustaining a force F. Determine the force along each rod for equilibrium. The forces may be positive (tenstion) or negative (compression). Let the lengths be L = 7m, L = 2.8m, L3 =...
-
5. Consider the inclined manometer below. Plot the change in differential pressure versus the change in differential length, &, of the mercury in the inclined section. SG=0.9 30 100 mm 50 mm Water 80...
-
A car is at position "O" with a speed of 50 ft/s when it begins to brake. The speed decreases at a constant rate of 1 ft/s. The car continues to brake at this rate as it travels from O to B. Assume...
-
Two particles are located on the \(x\) axis of a Cartesian coordinate system. Particle 1 carries a charge of \(+2.0 \mathrm{nC}\) and is at \(x=-30 \mathrm{~mm}\), and particle 2 carries a charge of...
-
The production budget of Artest Company calls for 80,000 units to be produced. If it takes 30 minutes to make one unit and the direct labor rate is $16 per hour, what is the total budgeted direct...
-
If Malaysia experiences a decline in economic growth (and experiences a decline in inflation and nominal interest rates as a result), what would the probable impact on its currency be when it is...
-
A certain factory building has an old lighting system. To light this building costs, on average, $30,000 a year. A lighting consultant tells the factory supervisor that the lighting bill could be...
-
An industrial firm is considering purchasing several programmable controllers and automating their manufacturing operations. It is estimated that the equipment will initially cost $150,000, and the...
-
The owner of a business is considering investing $55,000 in new equipment. He estimates that the net cash flows will be $5,000 during the first year and will increase by $2,500 per year each year...
-
According to the context, what is changing HR Professionals' ability to track talent costs?
-
Have a look at the SuperChem VR company's Chemistry Lab Simulator. The owner of SuperChem VR is preparing his pitch deck for an important investor. He aims to expand his AR/VR services company in the...
-
What led the Department of Health and Human Services and CMS to implement a new prospective payment system across all types of care?
Study smarter with the SolutionInn App