User Account

All Pages

What is effective interest rate of the loan

Assignment Help Accounting Basics
Reference no: EM132882447

Question - My Hope Company is negotiating for a 4-month discounted loan for 200,000 at 12% per annum. The negotiated loan requires a 20% compensating balance. What is effective interest rate of the loan?

a. 15.79

b. 15.00

c. 17.65

d. 15.59

Reference no: EM132882447

Questions Cloud

What is the annual effective interest rate : If an Ocampo Corporation issues P50 million of commercial paper with a maturity of 6 months. What is the annual effective interest rate
Amazon and google are leaders in respective fields : Both Amazon and Google are leaders in their respective fields however most don't know that their core business can be described in one word
Explain two physician collaboration issues that identified : Briefly describe the practice agreements for PMHNPs in your state. Explain the two physician collaboration issues that you identified.
Business level strategy and corporate level strategy : Discuss the differences and relationships between a business level strategy and a corporate level strategy.
What is effective interest rate of the loan : My Hope Company is negotiating for a 4-month discounted loan for 200,000 at 12% per annum. What is effective interest rate of the loan
Purchasing-supply chain management professional : An interview with a purchasing/supply chain management professional.
How much is budgeted sales revenue for the third quarter : At January 1, 2016, Barry, Inc. has beginning inventory of 5,000 widgets. How much is budgeted sales revenue for the third quarter of 2016
Advantage and comparative advantage trade theories : Distinguish between absolute advantage and comparative advantage trade theories and give examples.
Servant leader instill spirit of consciousness : How and why should a servant leader instill a spirit of consciousness, gratitude, and forgiveness in their organization?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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