Line of credit at an annual rate of interest

Assignment Help Microeconomics
Reference no: EM13831391

Acme Co.has a $100,000 line of credit at an annual rate of interest of 9.5 percent. The loan agreement also requires a 4 percent compensating balance on any funds used. What is the effective annual interest rate if the firm needs $60,000 for the entire year to fund its operations?

9.81% 9.50% 9.74% 9.90% 9.62%

Teddy's Pillows had beginning net fixed assets of $600 and ending net fixed assets of $680. Assets valued at $400 were sold during the year. Depreciation was $50. What is the amount of net capital spending?
$80 $130 $450 $180 $350

 

Reference no: EM13831391

Questions Cloud

What is the speed of each of the two trains : what is the speed of each of the two trains
A company disposes of equipment : A company disposes of equipment that it no longer uses in its business. The amount received by the company is more than the amount the asset is carried at in the accounting records. The company will report a(n)
What is the effective annual interest rate : 14. Mesa Co. has an $80,000 line of credit with a 12 percent interest rate and a 10 percent compensating balance requirement that is based on the total amount borrowed. What is the effective annual interest rate if the firm needs $45,000 for one year..
Wireless communication networks and systems : Wireless Communication Networks and Systems. For radio transmission in free space, signal power is reduced in proportion to the square of the distance from the source, whereas in wire transmission, the attenuation is a fixed number of dB per kilome..
Line of credit at an annual rate of interest : Acme Co.has a $100,000 line of credit at an annual rate of interest of 9.5 percent. The loan agreement also requires a 4 percent compensating balance on any funds used. What is the effective annual interest rate if the firm needs $60,000 for the enti..
Develop two select commands for each table : Develop two SELECT commands for each table. One of the commands for each table should use a WHERE clause to filter the records being returned.
The current values of the deposit multiplier : Economists believe that the current values of the deposit multiplier and the money multiplier are widely divergent. Why might these values differ at present? What (if anything) do you think must happen for them to converge once again?
Development of capitalism and modern economic analysis : Markets have been present to some degree throughout history, but market society is fairly recent. What does Varoufakis argue was necessary for the development of capitalism and modern economic analysis?
Identify the mood the author intended : Identify the mood the author intended

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the variables consumption shedule

What are the variables (the items measured on the axes) in a graph of the a) consumption shedule and b) the saving schedule Are the variables inversely (negatively) related or are they directly (positively) related

  What are addictive substances

Sixteen states sue the major tobacco companies for billions of dollars because of tobacco-related costs in their Medicaid programs. Medical evidence that more than two cups of coffee a day (Considered by many to be a substitute for smoking) greatl..

  What are the three allocation problems all societies face

Give an example of a scarce resource and at least two different uses for that resource and what are the three allocation problems all societies face as a result of scarce resources?

  Assess impact of the behavior on productivity cost

with the current u.s. economy in a weakened state many companies are reluctant to implement any capital improvements or

  What indictors are evident that there is too much or too

Currently, what indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?

  What is the opportunity cost of producing goods

What is the opportunity cost of producing pastries and sandwiches in West Coast? Which nation has a comparative advantage in producing pastries and which nation has a comparative advantage in producing sandwiches?

  Write one page about real-life situation where you need to

write one page about a real-life situation where you need to negotiate. describe this process. please illustrate how

  Does law of diminishing marginal product hold for the

suppose that the capital machines in a particular plant is fixed in the short run and is equal to k 2. thus the only

  Suppose that the government imposed a price floor on wages

Suppose that the government imposed a price floor on wages (minimum wage) in order to make sure that workers can earn a living wage. Is this a price floor? What are the economic implications of this action in the labour markets? Use graphs as require..

  Discuss the issue of health care in the context

As prices increase, should health economists advocate giving something up (opportunity costs/trade-offs)? As the quantity of health services provided goes up, does the benefit of each additional unit of service become smaller (marginal analysis)?

  Calculating equilibrium price and quantity

Assume a company has the following demand equation, Q = 1,000 - 3,000P + 10A, where Q = quantity demanded, P = product value, and A = advertising expenditures

  How many units of blood will be used in the united states

The report indicates that the current price of decontaminated blood is $80 per pint. However, if the new screening methods are adopted, the demand and supply for decontaminated blood will change to Qd = 175 – P and Qs = 2P – 200.

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