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maximum bank has analyze the accounts receivable a scientific software, Inc. the bank has chosen eight accounts totaling $180,000 that it will accept as collateral.
maximum bank has analyze the accounts receivable a scientific software, Inc. the bank has chosen eight accounts totaling $180,000 that it will accept as collateral. The banks terms include a lending rate set at prime +2.5% and a 1.5% commission charge. The prime rate currently is 7% a. The bank will adjust the accounts by 10% for returns and allowances. it then will lend up to 95% of the adjusted acceptable collateral. what is the maximum amount that the bank will into scientific software? b. what is scientific software's effective annual rate of interest if it borrows $120,000 for 12 months? six months? For three months? (note assume a 365 day year and a prime rate that remains at 7% during the life of the loan)
maximum bank has analyze the accounts receivable a scientific software, Inc. the bank has chosen eight accounts totaling $180,000 that it will accept as collateral. The banks terms include a lending rate set at prime +2.5% and a 1.5% commission charge. The prime rate currently is 7%
a. The bank will adjust the accounts by 10% for returns and allowances. it then will lend up to 95% of the adjusted acceptable collateral. what is the maximum amount that the bank will into scientific software?
b. what is scientific software's effective annual rate of interest if it borrows $120,000 for 12 months? six months? For three months? (note assume a 365 day year and a prime rate that remains at 7% during the life of the loan)
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