What rate would you actually be paying here

Assignment Help Financial Accounting

Reference no: EM133434334

Question: You are looking at a one-year loan of $16,000. The interest rate is quoted as 11% plus two points. A point on a loan is 1% of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 11%. What rate would you actually be paying here?

Reference no: EM133434334

Questions Cloud

Explain what culture intelligence : Explain what culture intelligence is. How is it similar to and different from emotional intelligence?

Indicate whether or not to accept the order for 3,000 bags : Using the differential analysis (relevant costs and benefits), indicate whether or not to accept the order for 3,000 bags. Present all your computations

Evidence-based decision-making practices : Evidence-based decision-making practices.

Social media differ between personal and professional life : What is the role of social media in professional life? How does the role of social media differ between personal and professional life?

What rate would you actually be paying here : The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 11%. What rate would

Explain the effect of agency problem on achieving : Explain the effect of agency problem on achieving the main goal of a firm. How can this problem be mitigated?

Create the journal entries for brad''s bakery if company : ???If company A paid for the cookies on May 28th, how much would they pay for them? Show your calculation. ???Create the journal entries for Brad's Bakery

Discuss potential medical complications for undiagnosed case : Discuss potential medical complications for undiagnosed cases and complications as a result of patient non-compliance.

???calculate the yearly depreciation expense : ???Calculate the yearly depreciation expense. Show your calculation. ???Create the journal entry to record depreciation expense for 2022

Reviews

Write a Review

Required(*) Message

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Financial Statement Analysis and Preparation

Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

Computation of free cash flow

Computation of Free Cash Flow

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

User Account

All Pages