Youve just taken out the loan for 75000 the stated simple

Assignment Help Accounting Basics
Reference no: EM13395071

You've just taken out a loan for $75,000. The stated (simple) interest rate on this loan is 10 percent, and the bank requires you to maintain a compensating balance equal to 15 percent of the initial face amount of the loan. You currently have $20,000 in your checking account, and you plan to maintain this balance. The loan is an add-on installment loan which you will repay in 12 equal monthly installments, beginning at the end of the first month.

Refer to Scenario 22-1. What is the nominal annual add-on interest rate on this loan?

1. 10.00%

2. 24.00%

3. 16.47%

4. 20.00%

What is the nominal annual add-on interest rate on this loan?

1. 10.00%

2. 24.00%

3. 16.47%

4. 20.00%

Reference no: EM13395071

Questions Cloud

Write down a 700- to 1400-word paper explaining the laws : write a 700- to 1400-word paper describing the laws governing legal authority and licensing requirements for private
Results amp discussion did you reject the null hypothesis : create a research hypothesis in your area of study that would be answered using either an independent or dependent
What is the appropriate balance for the allowance for : huron corp. operates in an industry that has a high rate of bad debts. nbspon dec.31 before any year end adjustments
What percentage would be an expected outcome in the sample : a car manufacturer tests the first 1000 cars coming off the assembly line to see if their new anti-lock braking system
Youve just taken out the loan for 75000 the stated simple : youve just taken out a loan for 75000. the stated simple interest rate on this loan is 10 percent and the bank requires
If inflation pushes price level up by 10 percent find the : suppose you have 500 in savings when the price level index is at 100.a if inflation pushes the price level up by 10
What steps are needed for a company to receive the : 1 what steps are required for a company to receive international organization for standardization iso certification? 2
A material requirements planning mrp is most valuable in : 1 is when the activities in the stage must stop because there is no place to deposit the item just completeda.nbspnbsp
Examine joes and sallys strategies by drawing the profit : joe finance has just purchased a stock index fund currently selling at 1200 per share.to protect against losses joe

Reviews

Write a Review

Accounting Basics Questions & Answers

  Computing amount of gross profit

What is the amount of gross profit? Show calculations. What is the amount of operating income? Show calculations. What is the amount of pretax income?Show calculations

  The role of an investor or creditor

Putting yourself in the role of an investor or creditor, suggest the ratios that you believe would provide you with the most important information needed to make accurate predictions about the company's financial condition. Provide a rationale..

  What is the journal entry needed to record the payment

On March 17, Grady Company agrees to accept a 60-day, 9%, $10,200 note from Alert Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?

  What are the implications of both of these kinds of differ

Organizational/Consumer Markets How do organizational and consumer markets differ? What are the implications of both of these kinds of differences for developing marketing programs?

  Unit cost for the direct materials

What is the unit cost for the direct materials for 19x1, assuming direct materials cost is for the production of 507,000 units? A. $3.20 b. $3.80 c. $4.00 d. $4.32 128.

  What is the amount of ending inventory

Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each. Chess Top al..

  Amount of expense recognized-accrual-basis accounting

Speedy paid $90,000 of the fuel cost in May, with the remainder paid in June. In addition, Speedy paid $15,000 in May to another fuel supplier in an effort to build up its supply of fuel. Calculate the amount of expense recognized in May under accr..

  Fair market value of the house

Jose purchased a house for $175,000 in 2005. He used the house as his personal residence. In March 2008, when the fair market value of the house was $255,000, he converted the house torental property.

  Supplies expense of the year

A company office supplies account shows a beginning balance of $600 and an anding balance of $400. if office supplies expense of the year is $3,100, what amount of office supplies was purchased during the period?

  Advantages-disadvantages of ideal versus normal standards

The comparative advantages and disadvantages of ideal versus normal standards. The factors that should be included in setting the price and quantity standards for direct materials, direct labor, and manufacturing overhead.

  Suppose caterpillar inc has 665 million shares outstanding

uppose caterpillar inc. has 665 million shares outstanding with a share price of 74.77 and 25 billion in debt. if in

  What are the two methods of accounting

Find what are the two methods of accounting for treasury stock and fill the journal entry to record the purchase of treasury stock by the cost method.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd