What is the annualized cost of the bank loan

Assignment Help Financial Management

Reference no: EM131882591

Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loan. The loan will carry a rate of 15 percent per annum with interest paid in advance (discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 9 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow $90,000 for a period of 3 months, what is the annualized cost of the bank loan? The annualized cost of the bank loan is.

Reference no: EM131882591

Questions Cloud

What are some fixed-mindset triggers : As Carol Dweck notes, we all hold both fixed and growth mindsets. Identifying situations that trigger a fixed-mindset voice can be a beneficial first step.

What exactly is health-related behavior you want to change : What exactly is the health-related behavior you want to change? Have you tried to change this behavior or a similar health behavior in the past?

Aspects of client centered therapy : The first section should support that aspects of Client Centered Therapy, an accepted secular counseling technique, are a direct application of biblical truth.

Identify any confounding variables : Based upon reports of increased violent crime in other parts of Oklahoma, the newly incorporated town of Hillsborough creates a law banning people

What is the annualized cost of the bank loan : Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loan. what is the annualized cost of the bank loan?

Compute the price and quantity variances for the month : Peter's Pretty PJs makes and sells children's pajamas. For direct materials, compute the price and quantity variances for the month

Describe your cryptanalysis process : INFA 640 9040 - Cryptology and Data Protection - Describe your cryptanalysis process. List all the steps you went through to decrypt the message

Client development-big production contract by new client : After spending $10,000 on client development, you have just been offered a big production contract by a new client.

What are racism-prejudice and discrimination : What are racism, prejudice, and discrimination? Identify some techniques for reducing the development of prejudice and discrimination.

User Account

All Pages