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HELP !!! The Stilton Cheese Company borrowed $40,000 from the Huron Bank. The loan was for 73 days. It required a compensating balance of 6%.
HELP !!! The Stilton Cheese Company borrowed $40,000 from the Huron Bank. The loan was for 73 days. It required a compensating balance of 6%. It was also a discount loan. Stilton received proceeds of $36, 800 from this loan. a) What is the stated rate of interest on this loan? b) If the loan term was 146 days, what would the loan proceeds be? The Bender Company purchased $11,000 of merchandise on credit with terms 5/15, n45. Bender is debating whether to pay early and receive the discount or not. It could really use the money required to pay early to take care of some pressing needs. Bender could borrow the money and pay early. The Third Street Bank, which is Bender's bank, offers short term loans with a 20% compensating balance at a stated rate of 18% annually. Should bender borrow money from Third Street Bank in order to pay early and receive the discount or not? Why or Why not? The loan would have to be repaid on day 45. Show your work to support your answer! (round money to the nearest cent and round all other items to 3 decimal places). Bender would borrow the amount needed to pay early. The Waldorf Corporation issued some commercial paper with a face value of $2,000,000 and a maturity of 270 days. Investors in the commercial paper market have a required return of 4.2% a) How much money will Waldorf raise with this paper? (round to the nearest dollar). b) What's the effective annual rate of interest what Waldorf pays for the funds acquired? (round to decimal places)
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