Determining the lower interest rate

Assignment Help Finance Basics
Reference no: EM132613548

Jessica needs to borrow $85000 for 9 months. Her bank would not lend her the money since she has no experience or assets. She found an individual who would lend her the money at 18.5%. However , her Uncle agreed to go to the bank and consign a loan to her, which means he will have have to repay the loan if Jessica fails to do so. On the basis, the bank agreed to lend her money at simple 10% interest. What will be the interest at (i) 18.5% (ii)10% (iii)what will be the amount using lower interest rate.

Reference no: EM132613548

Questions Cloud

Write concise explanatory notes on the accounting cycle : Write concise explanatory notes on the accounting cycle, owners equity, and liquidity, and profitability, and assets concepts/terms
Purpose of long-term foreign exchange management : The purpose of long-term foreign exchange management is not to cover a given foreign exchange exposure by dealings on the forward markets
Significance of various functions of investment banks : Critically evaluate the significance of various functions of Investment banks to the business sector in Pakistan.
Describe disruption they experienced in supply chain : explain what they do, and describe the disruption they experienced in supply chain and the negative effects it had on company's overall business performance
Determining the lower interest rate : What will be the interest at (i) 18.5% (ii)10% (iii)what will be the amount using lower interest rate.
Explain any five objectives of a business plan : Identify & briefly describe any five(5) characteristics of a sound financial plan. briefly explain any five (5) objectives of a business plan
Explain the liquidity risk for a bank and especially a bank : Explain the liquidity risk for a bank and especially a bank run and propose measures to reduce it.
Determining the funding long-run loans : What risks might financial institutions face by funding long-run loans such as mortgages to borrowers
How a share repurchase affects price to earnings : How a share repurchase affects Price to Earnings (PE), Return on Assets (ROA), Return on Equities (ROE), and the value of the company.

Reviews

Write a Review

Finance Basics Questions & Answers

  Global conglomerate corporation income statement for 2012

Global Conglomerate Corporation Income Statement for 2012 and 2011 Income Statement Year Ended December 31 (in $ million),2012 2011Total sales 186.7 176.1Cost of sales (153.4) (147.3)

  Determine the value of a share of dupont series a 350

determine the value of a share of dupont series a 3.50 cumulative preferred stock to an investor who requires the

  Describe two techniques that a company can use to hedge

describe two techniques that a company can use to hedge against transaction exchange

  Time value of money is a very important concept in

time value of money is a very important concept in corporate finance but itrsquos also important in your everyday life.

  Hedge the interest-rate risk

What forward contract would you enter into to hedge the interest-rate risk on these bonds over the coming year?

  What is the market value of short position

Suppose you want to buy the corporate bond and hedge it with a short position in the Treasury bond, what is the market value of your short position?

  What was the company net non-current asset investment

Brown's LTD had net non-current assets of $11 000 at the end of 2013 and $13 000 at the end of 2014 . In addition, the company had a depreciation expense.

  Sources of risk in a systems analysis

What are some sources of risk in a systems analysis and design project, and how does a project manager cope with risk during the stages of project management?

  Black feminism-womanist and white feminist movement

What was the relationship between black feminism/womanist and the white feminist movement?

  What is the market value per share of stock

Industrial Products has total assets of $627,000 and total liabilities of $328,400. The firm has 24,000 shares of stock outstanding and a market-to-book ratio of 5.1. What is the market value per share of stock?

  What are gabriel cash outflows for month

He spent $440 in personal wellness to take care of grooming and appropriate sportswear. He worked extra jobs that paid $1,530 and his regular job that paid

  What will be cost of equity after the switch

The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par.

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