What is the recovery rate on the defaulted loan

Reference no: EM131796130

Question: A customer defaults on a $28.2 million. The financial institution recovers $18.4 million, 20.5% of which is absorbed by administrative costs. The recovery process takes 2.6 years. The average discount rate over this period was 9%. What is the recovery rate on this defaulted loan. enter your answer as a decimal with four places of precision (i.e. 0.1234).

Reference no: EM131796130

Questions Cloud

Which focus area would be the most challenging : What criteria would you use in the emergency room to triage patients with potential exposure to the nerve agent sarin?

Calculate the financial impact of buying a ct unit : Calculate the financial impact of buying a CT unit that would cost $3.0 million, would have a five-year useful life

Probability of rolling a sum of x : a) Show that for X = 4, 5, 6, 8, 9, 10, P(Win|X0 = x) P(x)/[P(x) + P(7)] Where P(x) = P(Xi = x) is the probability of rolling a sum of x. (Refer to Example2).

Interested in conducting ethics training for its employees : A hospital is interested in conducting ethics training for its employees (doctors, receptionists, medical assistants, etc).

What is the recovery rate on the defaulted loan : A customer defaults on a $28.2 million. The financial institution recovers $18.4 million, 20.5% of which is absorbed by administrative costs.

Record the transactions in journal of harris tree cellular : Record the transactions in the journal of Harris Tree Cellular, Inc. Key transactions by date and include an explanation for each entry

Describe the relative weight of authority generally given : For each of the statements of IRS position and practice listed below, briefly describe the relative weight of authority generally given to each.

Tosses of a fair coin : Suppose we play the following game based on tosses of a fair coin. You pay me $10, and I agree to pay you $n2 if heads comes up first on the nth toss.

Contrast the key concepts of balanced scorecard : Compare and contrast the key concepts of a balanced scorecard and key elements of strategy implementation.

User Account

All Pages