What is his effective rate of interest

Assignment Help Financial Management

Reference no: EM131875513

1. Kenneth's Arrows and Bows borrow $6,000 for one year at 9 percent interest. What is the effective rate of interest if the loan is discounted? (Use 360 days in a year.) a. Less than 9.0 percent b. More than 11.0 percent c. More than 9.0 percent, but less than 10.1 percent d. More than 10.1 percent, but less than 11.0 percent.

2. Mr. Jones borrows $1,600 for 90 days and pays $34 interest. What is his effective rate of interest? (Use 360 days in a year. Round your answer to 2 decimal places.) 10.80% 13.20% 9.04% 8.50%.

Reference no: EM131875513

Questions Cloud

Determine the attractiveness of the industry : Using the hamburger fast food industry, apply the five forces framework and determine the attractiveness of the industry based on your analysis.

Expectations theory of term structure of interest rates : If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(2r1)?

Relationship between interest rate level and bond price : What is the relationship between interest rate level and bond price? Why must this relationship be true?

How will you measure a successful campaign for our client : What is the name of your team? This is your brand... make it good! (How to Name a Business - by The Staff of Entrepreneur Media, Inc.)

What is his effective rate of interest : Mr. Jones borrows $1,600 for 90 days and pays $34 interest. What is his effective rate of interest?

What are pricelines internal strengths and weaknesses : What are Priceline's internal strengths and weaknesses? Who are Priceline's competitors? Do you see Priceline's strategy as effective or ineffective? Why?

Compare the different approaches described in the case study : To prepare for this Discussion, read the ECCO case study and consider the various approaches to supply chain and R&D management.

What suggestions might you have for the expectant couple : What suggestions might you have for the expectant couple to increase the chances of a healthy baby? What specific recommendations would you give

What is the breakeven number of patient visits per year : Given the above, what is the breakeven number of patient visits per year? Explain your logic.

User Account

All Pages