Calculate the loan annual financing cost

Assignment Help Business Management
Reference no: EM132998173

Van Buren Resources Inc. is considering borrowing $120,000 for 203 days from its bank. Van Buren will pay $4,000 of interest at maturity, and it will repay the $120,000 of principal at maturity. Assume that there are 365 days per year.

-Calculate the loan's annual financing cost. Round your answer to two decimal places. ___________ %

-Calculate the loan's annual percentage rate. Round your answer to two decimal places. _____________ %

-What is the reason for the difference in your answers to Parts a and b? (AFC or APR) does not consider compounding effects.

Reference no: EM132998173

Questions Cloud

Determine the annual financing cost : Determine the annual financing cost of a 1-year (365 days), $10,000 discounted bank loan at a stated annual interest rate of 10.5 percent. Assume that no compen
What annualized holding period return for general electric : During that period the stock paid dividends of $2.69 per share. What is your annualized holding period return (annual percentage rate)?
What rate of return does the investor expect to receive : What rate of return does the investor expect to receive on this stock if he or she purchases the stock today? Digging Deep Company's common stock is currently.
Which journal entry for gst is correct for the payment : Assuming Clifton Street Ltd is registered for GST and uses the Periodic inventory, Which Journal entry for GST is correct for the payment received by the firm?
Calculate the loan annual financing cost : Van Buren Resources Inc. is considering borrowing $120,000 for 203 days from its bank. Van Buren will pay $4,000 of interest at maturity, and it will repay the
Determine the revenue to be recognised by dinesh : Determine the revenue to be recognised by Dinesh in his accounting books by way fees for calendar year 2020 from this company.
Prepare journal entries to record the event in june : On 29 July, Chan Ltd, whose $1,870 account had been written off as uncollectible in June, paid its account in full. Prepare journal entries to record this event
Find the optimal solution and optimal value : Consider the following linear programming problem. Max 2X + 3Y 4X + 9Y = 36 7X + 5Y = 35 X, Y = 0
Record any gain or loss on disposal of the equipment : Record any gain or loss on disposal of the equipment directly to the partners' capital accounts. C sold his interest to the partnership for ?155,000 cash.

Reviews

Write a Review

Business Management Questions & Answers

  Negotiating contracts with the employees

you decide to apply for a higher position, and you get it! Your friend is thrilled, however, a few months down the road you are in a difficult position.

  Determine your non-negotiable items

Determine your non-negotiable items. Will it offer you opportunities to advance? Are you comfortable sitting at a desk all day, or do you prefer to travel?

  Specific policies addressing issue

Do you think companies should have specific policies addressing this issue, or do you think it differs according to the type of industry? Why?

  What is sarah holding period return

She sold all stocks today for $56.77. During the year the stock paid dividends of $4.70 per share. What is Sarah's holding period return

  Make an external environment analysis

Make an External Environment Analysis (Supply Side Analysis) to explain whether Bulgaria is an attractive manufacturing base or service hub for the multinationa

  Outline features of an ideal health care policy

Outline features of an ideal health care policy. Keep in mind that, despite your wisdom and noble intentions, resources are limited. What are several of the policy items you want to focus on immediately?

  Combinational circuits equivalent

a) Are these two combinational circuits equivalent? Provide proof of your claim.

  Perform a high level risk analysis for project

Perform a high level risk analysis for this project. Be sure to define mitigation techniques.

  What is the stock value-pollock inc

Pollock, Inc. has perpetual preferred stock outstanding that has a par value of $100, pays an 8% annual dividend, and currently yields 11%.

  Identify three technologies used for training

Identify three new technologies used for training. Discuss the advantages and disadvantages of each in regard to learning.

  Gen y leadership development

3M is primarily a manufacturing organization. Facebook is a tech company. Compare and contrast their differing approaches to Gen Y leadership development.

  Competitive advantage through people

Discuss how organizations can achieve sustained competitive advantage through people. Be specific and make sure you address all conditions which must be met.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd