Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days

Question:

Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days and a nominal interest rate of 8%. The bank discounts the interest.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Construction accounting and financial management

ISBN: 978-0135017111

2nd Edition

Authors: Steven j. Peterson

See More Books

Question Posted: Mar 27, 2013 06:55 AM

See More Questions

Determine the effective annual interest rate on a $75,000 short-term loan, with a term of one year and a nominal interest rate of 12%. The bank discounts the interest.
Determine the effective annual interest rate on a $25,000 line of credit with an annual percentage rate of 8.75% compounded monthly. The bank requires that a 1.5% commitment fee be paid on the unused...
Determine the effective annual interest rate on an $85,000 line of credit with an annual percentage rate of 9.25% compounded monthly. The bank requires that a 2% commitment fee be paid on the unused...
Why is it so difficult to assess whether a firm is properly valued?
Starting from rest, a wheel has constant ( = 3.0 rad/s2. During a certain 4.0 s interval, it turns through 120 rad. How much time did it take to reach that 4.0 s interval?
Lucas is 22 years old and has recently completed a Bachelor of Commerce at Deakin University. He has decided to put his learnings into practice and wishes to commence his investment journey. Lucas...
Explain why each of the following is or is not a valid probability distribution for a discrete random variable x: a. x 0123
Complete the chart below, indicating the Calvet Trusts entity accounting income for each of the alternatives. For this purpose, use the following information. Interest income, taxable Interest...
Assume that you take out a $2000 loan for 57 months at 5.5% APR. How much total interest will you have paid at the end of the 57 months?
Siegel Company manufactures a product that is available in both a deluxe model and a regular model. The company has manufactured the regular model for years. The deluxe model was introduced several...
Your company has an existing loan with monthly payments, principal, and interest of $1,883.65. There are 48 payments left on the loan and the loan has an unpaid balance of $74,269.00. Your company is...
How would the effective annual interest rate for Problem 27 change if the bank charged a 1% loan origination fee? In Problem 27, determine the effective annual interest rate on a $75,000 short-term...
A jar contains n chips. Suppose that a boy successively draws a chip from the jar, each time replacing the one drawn before drawing another. The process continues until the boy draws a chip that he...
Civil What are the challenges of using intermediate structures in the analysis of Pauli structures?
Civil What are the advantages of intermediate structures in the analysis of Laguerre structures?
Civil What are the disadvantages of using intermediate structures in the analysis of geothermal energy environmental product promotion?
Civil How can intermediate structures be used in the analysis of geothermal energy environmental product pulmonary toxins?
Civil What challenges arise when using intermediate structures in the analysis of structural robustness?
Do you agree that technology is widening the economic development gap between rich and poor nations? Explain.LO4
Would you use the adjacency matrix structure or the adjacency list structure in each of the following cases? Justify your choice. a. The graph has 10,000 vertices and 20,000 edges, and it is...
Costs, timeliness, and ____________ are among the recommended criteria for evaluating alternative courses of action. (a) ethical soundness (b) competitiveness (c) availability (d) simplicity
Fifteen years ago, Roop Industries sold $400 million of convertible bonds. The bonds had a 40-year maturity, a 534 percent coupon rate, and were sold at their $1,000 par value. The conversion price...
The Howland Carpet Company has grown rapidly during the past 5 years. Recently, its commercial bank urged the company to consider increasing its permanent financing. Its bank loan under a line of...
The Howland Carpet Company has grown rapidly during the past 5 years. Recently, its commercial bank urged the company to consider increasing its permanent financing. Its bank loan under a line of...
Suppose the S&P 500 currently has a level of 960. One contract of S&P 500 index futures has a size of $250 S&P 500 index. You wish to hedge an $800,000-portfolio that has a beta of 1.2. (A)In order...
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during...
Haley is 57 years of age. She is planning for future long-term care needs. She knows that yearly nursing home costs in her area are currently $69,000, with prices increased by 5 percent annually....

Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days

Question:

Step by Step Answer:

Using Eq 162 we get the following I P i D 365 10000000008245365 536986 Find ...View the full answer

Construction accounting and financial management

Students also viewed these Finance questions