Find the cost of this loan for chatterton

Assignment Help Financial Management

Reference no: EM131075937

Chatterton Company has obtained a $75,000 short-term loan from the bank with the understanding that Chatterton will repay the loan in two equal monthly installments of $38,250 each. The first installment is due after 30 days, and the second after 60 days. Find the cost of this loan for Chatterton. Assuming 365 Days in year Cost of this loan for Chatterton per 30 days = rate (2,38250,-75000,0) Cost of this loan for Chatterton per 30 days = 1.33% I calculated this using excel, how do you do it by hand.

Annual Cost of this loan for Chatterton = (1+1.33%)^(365/30) - 1 Annual Cost of this loan for Chatterton = 17.44% Answer Cost of this loan for Chatterton = 17.44%

Cost of this loan for Chatterton per 30 days = 1.33% I calculated this using excel, how do you do it by hand?

Reference no: EM131075937

Questions Cloud

Deferred tax liability : At the beginning of 2012, Annie, Inc. has a deferred tax asset of $7,500 and deferred tax liability of $10,500. In 2012, pretax financial income was $826,000 and the tax rate was 35%.

How much will you invest in the risk-free asset : You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Investment Beta Stock A $ 142,000 .87 Stock B $ 138,000 1.32 Stock C 1.47 Risk-free asset..

Oligopoly and monopolistic competition : Give examples of competition of firms in Oligopoly and Monopolistic Competition, from the real world. In which market will one firm's probable decision affects the other firm's decision? Try to think of situations of of how they would compete in t..

Significance of daily interruption in sedation : In mechanically ventilated adult patients, will intermittent sedation compared to continuous sedation decrease the number of use in mechanical ventilation days by a percentage and drop in hospital expenses and decrease in mechanical ventilator day..

Find the cost of this loan for chatterton : Chatterton Company has obtained a $75,000 short-term loan from the bank with the understanding that Chatterton will repay the loan in two equal monthly installments of $38,250 each. The first installment is due after 30 days, and the second after 60 ..

Problem regarding the current account deficit : Ceteris paribus, show graphically and explain the effect of an increase in Australian government budget deficits that increase Australian interest rate of euros for Australian dollars. Why might the budget deficit lead to a current account deficit..

Read the section entitledthe financial crisis and insurers : Write a APA formatted paper 1100 or more words discussing the Financial Crisis' impact upon the current financial operations of Property & Casualty Insurance companies as well as Life Insurance companies.

Why are home equity loans attractive today : Why are home equity loans attractive today? How do some banks tie home equity loans to a customer’s credit card? How did the credit crisis and subprime problems of 2008–2009 change the attractiveness of home equity loans? How might this change in the..

What is the iron(ii) concentration on the rebar : What is the iron(II) concentration on the rebar

User Account

All Pages