What are the effective interest rates on these loans

Assignment Help Accounting Basics

Reference no: EM13501436

Question :The Magic Pumpkin Limousine Company wants to purchase a car entertainment system for one of its automobiles. The entertainment system vendor has offered to finance the $2,000 purchase over one year in 12 installments, with a total of $200 in interest to be paid on the loan.

Magic Pumpkin''s bank has offered to finance the purchase with an installment loan, where $155 in interest will be repaid and payments on the loan must be made quarterly. What are the effective interest rates on these loans? Which loan should they select?

Reference no: EM13501436

Questions Cloud

Explain the activation energy of a certain reaction : The activation energy of a certain reaction is 46.7 kJ/mol. At 28 C, the rate constant is .0150 s^-1. At what temperature in degrees Celsius would this reaction go twice as fast

Describe how salvage values are taxed : What is the expected NPV of stage 2, assuming there is an 80% probability that demand will be high during stage 2, but a 20% chance that demand will be low?

Explain the rate of reaction with respect : Given the following balanced equation, determine the rate of reaction with respect to [SO2]: 2SO2 (g) + O2 (g)......yields..... 2SO3 (g)

How much heat must be absorbed by the ice before it melts : Ice of mass 11.0 kg at 0.00° C is placed in an ice chest. The ice chest has 3.10 cm thick walls of thermal conductivity 1.00 x 10^-5 kcal/s · m · C°, How much heat must be absorbed by the ice before it melts

What are the effective interest rates on these loans : What are the effective interest rates on these loans and Which loan should they select

Determine the mass of the helium : A balloon is filled with 5.50 liters of helium at a pressure of 1.15 atm and a temperature of 27.5° C. Find the mass of the helium

How much heat is necessary to boil all the water away : A pot containing 1.07 liter of water, initially at 23°C, is placed on a 1071 W electric heating element. How much heat is necessary to boil all the water away

Evaluate the rate constant at 47°c if the activation : The first-order rate constant for the reaction of methyl chloride (CH3Cl) with water to produce methanol (CH3OH) and hydrochloric acid (HCl) is 3.32 10-10s-1 at 25°C. Calculate the rate constant at 47°C if the activation energy is 116 kJ/mol.

Prepare a report on thermal analysis : Prepare a report on Thermal analysis - The cooling curve method is one of the oldest and simplest methods to determine phase diagrams and phase transition temperatures

User Account

All Pages