User Account

All Pages

Interest rate on the loan with the compensating balance

Assignment Help Business Management
Reference no: EM131823518

Suppose your firm is seeking a six-year, amortizing $790,000 loan with annual payments and your bank is offering you the choice between a $839,000 loan with a $49,000 compensating balance and a $790,000 loan without a compensating balance. The interest rate on the $790,000 loan is 9.0 percent.

How low would the interest rate on the loan with the compensating balance have to be for you to choose it?

Reference no: EM131823518

Questions Cloud

Check out of many different stores very quickly : I know for myself, I use this payment method a lot when ordering online. It is easy and simple and allows you to check out of many different stores very quickly
How do we know that the chicken pox virus travels : Spinal Cord The chicken pox virus can reside in the peripheral nerves for decades and then cause terrible pain (shingles) in certain areas of the skin
What is the expected time to discover the correct password : Assuming feedback to the adversary flagging an error as each incorrect character is entered, what is the expected time to discover the correct password?
How does the greenhouse effect affect the energy budget : How does the greenhouse effect affect this energy budget? Why is it important to have 3 phases of water?
Interest rate on the loan with the compensating balance : How low would the interest rate on the loan with the compensating balance have to be for you to choose it?
Probability of selecting the correct source element : Assume that source elements of length k are mapped in some uniform fashion into a target elements of length p. If each digit can take on one of r values.
Annual results for two stocks : Explain why the following annual results for two stocks would be very unlikely to occur. If these were predicted figures for the coming year
Discuss potential problems with the use of irr : The use of NPV as an investment criterion is said to be more reliable than using IRR. Discuss potential problems with the use of IRR.
Calculate the degree of financial leverage of the firm : Please answer this question in dollar and percentage terms. Calculate the degree of financial leverage of the firm.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd