Solved: What rate would legally have to be quoted, Finance Basics

+44 141 628 6080
[email protected]

What rate would legally have to be quoted

Calculating EAR - A local finance company quotes a 15 percent interest rate on one-year loans. So, if you borrow $26,000, the interest for the year will be $3,900. Because you must repay a total of $29,900 in one year, the finance company requires you to pay $29,900/12, or $2,491.67, per month over the next 12 months. Is this a 15 percent loan? What rate would legally have to be quoted? What is the effective annual rate?

Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate would legally have to be quoted

Reference No:- TGS0679536

Now Priced at $5 (50% Discount)

Recommended (94%)

Rated (4.6/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : How much do you need to have in your bank account

Beginning three months from now, you want to be able to withdraw $2,500 each quarter from your bank account to cover college expenses over the next four years.

Q : Find the project payback period if the initial cost is given

An investment project provides cash inflows of $760 per year for eight years. What is the project payback period if the initial cost is $3,400? What if the initial cost is $4,450? What if it is $6,800?

Q : The business of injection molding of plastics

Scheer Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $438,100.

Q : Buffalo snow shoe company-expected net present value

Compute the expected net present value of this project. Buffalo's president does not believe that 5,000 pairs of the new snow shoes can be sold at a $50 price. He estimates that a maximum of 3,000 pairs will be sold at this price. How does the chan

Q : What rate would legally have to be quoted

The finance company requires you to pay $29,900/12, or $2,491.67, per month over the next 12 months. Is this a 15 percent loan? What rate would legally have to be quoted? What is the effective annual rate?

Q : What is the amount of interest paid in february

If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments.

Q : What should tom conclude from these computations

Five used vans would cost a total of $74,300 to purchase and would have a 3-year useful life with negligible salvage value. Tom plans to use straight-line depreciation.

Q : Bond yield to maturity-intercontinental baseball manufacture

Intercontinental Baseball Manufacturers (IBM) has an outstanding bond with a $1,000 face value that matures in 10 years. The bond, which pays $25 interest every six months ($50 per year), is currently selling for $598.55. What is the bond's yield

Q : What is forecast of free cash flows for given year

This includes the effect of $200,000 in depreciation. You also forecast a decrease in working capital of $100,000 that year. What is your forecast of free cash flows for that year?

1931402

Questions
Asked

3,689

Active Tutors

1436494

Questions
Answered

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

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate would legally have to be quoted

Reference No:- TGS0679536

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : How much do you need to have in your bank account

Q : Find the project payback period if the initial cost is given

Q : The business of injection molding of plastics

Q : Buffalo snow shoe company-expected net present value

Q : What rate would legally have to be quoted

Q : What is the amount of interest paid in february

Q : What should tom conclude from these computations

Q : Bond yield to maturity-intercontinental baseball manufacture

Q : What is forecast of free cash flows for given year

How everyones life is deemed valuable to god

Application of your passage following ibs principles

Can religion offer a good answer to the question

How will your work impact creation

Providing care that respects others spiritual and religious

Illustrate what corduan says about witnessing to buddhists

Compare the different understandings of chaos

Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate would legally have to be quoted

Reference No:- TGS0679536

Recent Questions Asked Finance Basics

Q : How much do you need to have in your bank account

Q : Find the project payback period if the initial cost is given

Q : The business of injection molding of plastics

Q : Buffalo snow shoe company-expected net present value

Q : What rate would legally have to be quoted

Q : What is the amount of interest paid in february

Q : What should tom conclude from these computations

Q : Bond yield to maturity-intercontinental baseball manufacture

Q : What is forecast of free cash flows for given year

Asked Questions