What is the effective annual rate of the loan, Finance Basics

+44 141 628 6080
[email protected]

What is the effective annual rate of the loan

Problem

Minnerly Motors recently borrowed an equipment loan of $20,000 with a nominal discount interest rate of 12.5% with quarterly compounding that requires 10% compensating balance. What is the effective annual rate (EAR) of the loan assuming 365-day per year?

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: What is the effective annual rate of the loan

Reference No:- TGS03258355

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : How to find a cell in anaphase

Problem: Danni wants to find a cell in anaphase. How will she know when she finds it?

Q : Why that is the most effective option and specifics of tool

Why that is the most effective option and the specifics of the tool you will use (e.g. duration, strike price, price, which currency you are hedging, etc.).

Q : Why is it potentially advantageous to have a forelimb lever

Problem: Why is it potentially advantageous to have a forelimb lever with low MA?

Q : How molecules move across a membrane

What effect will the addition of energy in the form of heat change how these molecules move across a membrane?

Q : What is the effective annual rate of the loan

Minnerly Motors recently borrowed an equipment loan of $20,000 with a nominal. What is the effective annual rate (EAR) of the loan assuming 365-day per year?

Q : What would be the cash conversion cycle after the change

Data of Westfield Goods Inc. for the most recent year. If this were done without impacting sales, what would be the Cash Conversion Cycle after the change?

Q : Calculate how many triplet codons would be possible

Calculate how many triplet codons would be possible had evolution seized on six bases rather than four bases with which to construct DNA.

Q : What is the expected value for spot exchange rate one year

What is the expected value for the spot exchange rate one year from now, according to purchasing power parity?

Q : What factors legally and economically will affect its growth

What factors, legally, politically, and economically, will affect its growth? What roles will large IT firms play? (acquisition? strategic alliance? R&D? etc).

1945574

Questions
Asked

3,689

Active Tutors

1416564

Questions
Answered

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

ask Question

Asked Questions

What is jennifer gross profit margin percentage

What is Jennifer's gross profit margin percentage? (Round your final answer to two decimal places, X.XX%.) 56.45% 31.29% 23.63% 43.55%

Revenue variance for october would be closest to

The revenue variance for October would be closest to: Group of answer choices $2,640 U $2,640 F $1,224 U $1,224 F

Rewrite, reorganize, add, and recast information

ewrite, reorganize, add, and recast information so that students can access the regular curriculum independently is__

What are common methods of brand equity measurement

Brand equity can be measured in a number of ways, but the 3 most common methods are which of the following? Select all that apply.

Describe factors that increase the probability of fraud

Use. You. Own. Words. 1. List, and briefly describe, the three main factors that increase the probability of fraud

What is the purpose of the cash flow statement

Q1. What is the purpose of the cash flow statement? What does it tell the user about the company?

How adverse opinion most likely should be expressed

An adverse opinion most likely should be expressed when The auditor cannot obtain sufficient appropriate evidence regarding the inventory count