Approximate rate of interest on percent add-on loan, Finance Basics

+44 141 628 6080
[email protected]

Approximate rate of interest on percent add-on loan

Coverall Carpets Inc. is planning to borrow $12,000 from the bank. The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the approximate (nominal) rate of interest on the 10.19 percent add-on loan?

a. 5.10%

b. 10.19%

c. 12.00%

d. 20.38%

e. 30.57%

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Approximate rate of interest on percent add-on loan

Reference No:- TGS044080

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Affect the reliability of evidence

One factor is the independence of the provider (evidence obtained from a source outside the client company is more reliable than that obtained whithin) identify and discuss the remaining five factors that affect the reliability of evidence?

Q : Responsibility for the financial statements under audit

Distinguish between managements responsibility and the auditor's responsibility for the financial statements under audit?

Q : Estimating net present value of investment

Kenneth made a $20,000 investment in year 1, received a $5,000 return in year 2, made an $8,000 cash payment in year 3, and received his $20,000 back in year 4. If his required rate of return is 8%, what was the net present value of his investment

Q : Aicpas code of professional conduct

Jordan woodard is an audit manager with Andersen Zelken, CPA's a one-office CPA firm. Jordan owns 100 shares of common stock in oneof the firm's audit clients, but she does not provide any audit or non-audit services to the company. Determine whet

Q : Approximate rate of interest on percent add-on loan

The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the approximate (nominal) rate of interest on the 10.19 percent add-on loan?

Q : Cost of using additional trade credit

The cost of using additional trade credit is approximately 36 percent. Considering only the explicit costs, Judy should finance the expansion with the bank loan.

Q : Relevant cost to the firm for taking project

MoonDollars Tea Corp. is considering a project that will cost the firm $300,000. In addition the firm has already spent $18,000 on taste tests. What is the relevant cost to the firm for taking this project? The firm is in the 34% marginal tax rate

Q : Wacc of johnson industries

Johnson Industries finances its projects with 40% debt, 10% preferred stock, and 50% common stock.

Q : Determining the opportunity cost of capital

The profitability index for a project costing $40,000 and returning $15,000 annually for four years at an opportunity cost of capital of 12% is:

1936773

Questions
Asked

3,689

Active Tutors

1424155

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Approximate rate of interest on percent add-on loan

Reference No:- TGS044080

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Affect the reliability of evidence

Q : Responsibility for the financial statements under audit

Q : Estimating net present value of investment

Q : Aicpas code of professional conduct

Q : Approximate rate of interest on percent add-on loan

Q : Cost of using additional trade credit

Q : Relevant cost to the firm for taking project

Q : Wacc of johnson industries

Q : Determining the opportunity cost of capital

Discuss use of electronic devices like social media

Patient tokala insists that he never dreams

Substance abuse program for teenagers struggling

Determining whether male college students

Defining characteristic of permissive-indulgent parents

Identify ego psychology limitations

How level of parental involvement impact middle school

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Approximate rate of interest on percent add-on loan

Reference No:- TGS044080

Recent Questions Asked Finance Basics

Q : Affect the reliability of evidence

Q : Responsibility for the financial statements under audit

Q : Estimating net present value of investment

Q : Aicpas code of professional conduct

Q : Approximate rate of interest on percent add-on loan

Q : Cost of using additional trade credit

Q : Relevant cost to the firm for taking project

Q : Wacc of johnson industries

Q : Determining the opportunity cost of capital

Asked Questions