Determine effective rate on installment loans

Assignment Help Macroeconomics
Reference no: EM1370383

The Dade Corporation is borrowing $300,000 for one year and paying $27,000 in interest to Miami National Bank. The Bank Requires a 20 percent compensating balance. Waht is the effective rate of interest? What would be the effective rate if the company were required to make 12 monthly payments to retire the loan? The Principal, as used in formula used below refers to the fund the firm can effectively utilize (amount borrowed-compensating balance)

Effective rate on installment loans= 2X Annual no. of payments x interest
(Total no. of Payments +1) x Principle

 

Reference no: EM1370383

Questions Cloud

Null and alternate hypothesis - research and evaluation : What is your decision regarding the HO. In other words, do you Accept or Reject the Principal's Null Hypothesis? Be specific as to why you decided to accept or to reject the Null Hypothesis.
Find a short list of potential target companies coca-cola : Find a short list of potential target companies Coca-Cola in China country Tingyi and Wahaha provide a rationale for considering each one.
Staffing factors : What are some of the "staffing factors" that could be contributing to this problem and how would you determine if it is in fact a training problem.
Question on labor economics : Suppose a firm is operating in perfectly competitive product market where the price of its output can be sold at the price p=$10. The firm can hire any number of workers at the wage of W=$50.
Determine effective rate on installment loans : The Dade Corporation is borrowing $300,000 for one year and paying $27,000 in interest to Miami National Bank. The Bank Requires a 20% compensating balance.
Explain about expert systems : find how an expert system can help improve our current maintenance issues being faced in our facility today.
Write program to test class-compute next month-s interest : Write the program to test class SavingsAccount. Instantiate two savingsAccount objects, saver1 and saver2, with balances of $2000.00 and $3000.00, respectively. Compute next month's interest and print new balances for both savers.
Explain the actual wages and salaries for the month : Explain The actual wages and salaries for the month was $19,980 and The activity variance for wages and salaries in May would be closest to-
Preferential treatment of veterans : Preferential Treatment of Veterans - Should disabled veterans get preferential treatment over better qualified candidates who are not disabled veterans?

Reviews

Write a Review

Macroeconomics Questions & Answers

  What would it make a difference if the controller

Should the controller's argument be accepted if she does not really know much about copier technology. What would it make a difference if the controller were knowledgeable about the pace of change in copier technology.

  Net advantage to leasing the industry will lease equipment

If there is a positive Net Advantage to Leasing the industry will lease the equipment. Otherwise, it will buy it. What is the NAL.

  Elucidate how globalization affects the gross domestic

Elucidate how globalization affects the gross domestic product (GDP). Explain your thoughts on globalization in your own words.

  Utility function for consumption and leisure

If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?

  Required to find out an articles about price elasticity

Required to find out an articles about price elasticity in the home building industry

  Finding the equilibrium

Discuss and explain some example of supply and demand that you have observed in the real world. Be do not use the example for the questions below, use something else.

  If the cost of a substitute product increases

If the cost of a substitute product increases, which of the following is most likely to happen in the market for the product under consideration in the short run.

  Impact of subsidy on consumers

Demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society's economic welfare.

  Expansionary and contractionary monetary policy

Discuss three automatic expenditures in the federal budget. What is the difference between discretionary fiscal policy and automatic stabilizers?

  Explain the economic impacts of a tariff

Using graphs, describe the economic impacts of a tariff on a nation welfare, and show how a tariff would affect the current equilibrium value and quantity and import levels within a market.

  How to calculate the slope then the intercept

how to calculate the slope then the intercept. With slope and intercept information supply and demand can be written in the familar.

  Illustrate what does the concept of opportunity cost

Illustrate what does the concept of opportunity cost indicate. Consider how the production of one good affects the possible production level of other goods.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd