Compute the effective annual interest rate of the loan

Assignment Help Financial Management

Reference no: EM131887061

You are planning tp borrow 10000 from a bank for two weeks. The banks terms are 7 percent annual interest, collected on a discount basis, with a 10 percent compensating balance. Compute the effective annual interest rate of the loan.

Reference no: EM131887061

Questions Cloud

Why african american women have a higher mortality rate : Explain why African American women have a higher mortality rate from breast cancer although their Caucasian female counterparts have a higher incidence rate.

What is the industry condition : The total debt/equity is 61.27 and a dividend yield of 1.74%. Using this information, what is the industry condition?

Find the probability that the sum of the 80 values : Find the probability that the sum of the 80 values (or the total of the 80 values) is more than 7400.

Explain the pathophysiology behind the condition : Explain the pathophysiology behind the condition. What would be a possible neurologic or musculoskeletal condition causing the symptoms?

Compute the effective annual interest rate of the loan : Compute the effective annual interest rate of the loan.

What is the best predicted iq of the twin born : What is the best predicted IQ of the twin born first twin born first?, given that the twin born second twin born second has an IQ of 106??

Calculating salvage value : Consider an asset that costs $404,800 and is depreciated straight-line to zero over its 10-year tax life.

What are the current controversies : Parkinson's disease is a progressive neurodegenerative disorder. Share your thoughts on the evolving therapies. What are the current controversies?

Market believe will be stock price at the end of three years : You are considering an investment in Justus Corporation's stock, what does the market believe will be the stock price at the end of 3 years?

User Account

All Pages