Compute the effective annual rate on a loan

Assignment Help Finance Basics
Reference no: EM131956833

Question: Company ABC needs to raise funds to expand their building.

What is the effective annual rate on a loan of $200,000 if it is discounted at an 8% annual rate and it matures in 9 months?

How much does ABC need to borrow in order to obtain usable funds of $200,000?

What is the effective annual rate if you borrow the usable funds of $200,000?

Reference no: EM131956833

Questions Cloud

Distributed network management system : What is an advantage of using a distributed network management system in the corporate enterprise?
Service level agreements : Briefly describe the goal of network management by using Service Level Agreements.
Annual rate did coin appreciate from its minting to sale : What annual rate did the 1979 buyer eanon his purchase? at what annual rate did the coin appreciate from its minting to he 2014 sale?
Describe the functionality of layers : Describe the functionality of Layers 3-4 in the OSI reference model.
Compute the effective annual rate on a loan : What is the effective annual rate on a loan of $200,000 if it is discounted at an 8% annual rate and it matures in 9 months?
Engineering technology group just purchased new cad software : An engineering technology group just purchased new CAD software for $15,000 now and annual payments of $1000 per year for six years.
Describe one way that information systems : AAA vision is to provide the best customer service and maintain and motivate loyal customers. Describe one way that Information Systems can support AAA to meet?
How did voters respond to lyndon johnsons term in office : How did the issue of race influence the outcomes of these elections? How did voters respond to Lyndon Johnson's term in office?
Importance of using and becoming the system superuser : Discuss the importance of using and becoming the system superuser. Describe pros and cons such as security, access, potential for compromise

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the store internal rate of return

Calculate the store's net present value using a 12 percent weighted average cost of capital.

  What is jc manufacturing final cost of the inventory

JC Manufacturing purchased inventory for $5,300 and also paid a $260 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 2%.

  What were the explanations given for the great moderation

During the early years of the new millennium, many economists described the past few decades as the period of the Great Moderation.

  Object-oriented development life cycle

Question 1. The object-oriented development life cycle consists of

  Determine contribution margin and projected profit

Susan Young is an attorney for a small law company in Arizona. She is also a part-time inventor and an avid golfer. One day Susan's golf foursome included a man named Henry Jones, a manufacturer of Christmas jewelry.

  Capm over apt or find a different solution

Discuss a scenario in which the CAPM and APT models would lead to contradicting conclusions regarding the selection of stocks for your portfolio.

  Determining the equity cost of capital

Summit Systems will pay a dividend of $1.56 one year from now. If you expect Summi's dividend to grow by 6.8% per year, what is its price per share if its equity cost of capital is 10.6%?

  Smith company presents the following data for 2006

smith company presents the following data for 2006. inventories beginning of year 310150 inventories end of year 340469

  Is nathan speculating or hedging

Consider the situation in sunny Southern California in 2005, where house prices have skyrocketed over the last few years and are at an all-time high.

  Would company stock trade for less than book value of equity

Under what circumstances would a company's stock trade for less than the book value of its equity?

  Review case study of the cracker barrel

Cracker Barrel, which operates restauarants and gift stores, is reexamining its policy of paying minimal dividends. In 1995, Cracker Barrel reported net income.

  Compute the total cost assigned to the money market

biltmore financial is a banking services company that offers many different types of checking accounts. the bank has

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