Effective rate of interest-carey company

Assignment Help Business Management
Reference no: EM132709853

Carey Company is borrowing $225,000 for one year at 13.0 percent from Second Intrastate Bank. The bank requires a 18 percent compensating balance. The principal refers to funds the firm can utilize effectively (Amount borrowed - Compensating balance).

What is the effective rate of interest? (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM132709853

Questions Cloud

Calculate the effective rate of interest : Your company plans to borrow $11 million for 12 months, and your banker gives you a stated rate of 22 percent interest.
Pros and cons for entrepreneur friendly bankruptcy laws : What would you consdier to be the pros and cons for entrepreneur friendly bankruptcy laws?
Journalize the petty cash transactions : Aug. 1 Established the petty cash fund by writing a check payable to the petty cash custodian for $215. Journalize the petty cash transactions
Find how much is the company fixed costs : Find How much is the company's fixed costs? When its sales increased to P500,000, its profit before tax increased by 100%. Its variable cost ratio is 40%.
Effective rate of interest-carey company : Carey Company is borrowing $225,000 for one year at 13.0 percent from Second Intrastate Bank.
Ponder on what global opportunities might exist : Discuss the lessons from this chapter and ponder on what global opportunities might exist in unlikely places for those daring to try as shown in the case
Compare two leadership theories : Compare two leadership theories. Provide an overview of each and discuss the strengths and weakness in relation to nursing practice. The response must be typed.
Managing a portfolio of credit risk : The KMV EDF model applies option pricing theory to calculate the probability of default.
What have learned about interest and borrowing money : You own a farm and grow seasonal products such as pumpkins, What have you learned about interest and borrowing money in this unit that may help you?

Reviews

Write a Review

Business Management Questions & Answers

  Average weight in excess

The weights of the sugar bags are normally distributed. What is the probability that 25 randomly selected packages will have an average weight in excess of 16.06 ounces?

  Models of economics

Create a chart that compares and contrasts the theories including the main theorists, a selection of countries using each model, and a summary of where the economic power lies (i.e., people, market, government).

  Question about managerial decision

Question about Managerial decision - Show your attitude about certainty, uncertainty, and risk when making decisions.

  Analysis for factory and dealership locationsan automobile

analysis for factory and dealership locationsan automobile company is trying to evaluate where to locate its factory

  Freedom of produces provide benefits for individual consumer

Summarizing how does a free economy freedom of produces provide benefits for individual consumer?

  Depending on the person

The answer to this question will vary depending on the person and his or her values and background. Some students are more focused on day-to-day personal needs and others on broader societal or global concerns.

  Database management skills

Find a job posting for a database administrator or something similar and describe what skills you would need to obtain the job.

  If you are a shareholder for a for-profit organization

If you are a shareholder for a for-profit organization, what are some of the concerns that can arise while strategixally planning a home base hospital care

  Using a five –week moving average

a) Prepare a forecast through week 11 by using a five –week moving average b) Prepare a forecast through week 11 by using a 3-period weighted moving average, giving the weight of 0.5 to the most recent week, 0.3 to the second week and 0.2 to the thir..

  Examine the concepts that have been studied and discussed

As you examine the concepts that have been studied and discussed throughout this course, please reflect on your goals as a business professional, and identify 4-5 areas for you to focus on developing throughout your MBA studies.

  What should the top management do

What should the top management do? Use the Strategic management process to support your response

  How can an enterprise resource planning

How can an Enterprise Resource Planning (ERP) system help an US company transition from U.S. GAAP to IFRS?

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