Earn an effective annual return on its consumer loans
Course:- Financial Management
Reference No.:- EM13891871

Assignment Help >> Financial Management

Magnus Credit Corp. wants to earn an effective annual return on its consumer loans of 17.75 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Use 365 days in a year. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Historically, the proportion of students entering a university who finished in 4 years or less was 64%. To test whether this proportion has decreased, 122 students were examin
The Arnold National Bank has a bond portfolio that consists of bonds with 5 years to maturity and a 9% coupon rate. These bonds are selling in the market for $1126. Coupon pay
You invest one-third of your wealth in each of three stocks. The expected return and standard deviation of each individual stock is 10 percent and 20 percent, respectively. Ea
You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage loan for 85 percent of the $3,800,000 purchase price. The monthly paym
Consider the following financial statement information for the Ayala Corporation: Item Beginning Ending Inventory $ 11,600 $ 12,600 Accounts receivable 6,600 6,900 Accounts pa
Let's discuss how we actually derive a budget. Discuss the five basic steps of budgeting and how each are determined. What are some of the difficulties that can arise in this
A bond has a 7.5% annual coupon rate with 4 years to maturity and pays annual coupon. par value is $1000. What is the price of the bond if the yield to maturity is 5%. What is
What are appropriate equity premium estimates?  -  What are not? What kind of reasoning are you relying on?- What is today's risk-free rate for a 1-year project?