### Effective rate of interest for the types of loans

Assignment Help Business Economics
##### Reference no: EM132281231

Your company plans to borrow \$5 million for 12 months, and your banker gives you a stated rate of 14 percent interest. You would like to know the effective rate of interest for the following types of loans.

(Each of the following parts stands alone.)

a. Simple 14 percent interest with a 10 percent compensating balance.

b. Discounted interest.

c. Discounted interest with a 5 percent compensating balance.

#### The government increases spending on current services

Analyze the effect of each of the following events on the market for loanable funds in a closed economy in long run equilibrium. In each case, identify the effect on national

#### Types of private solutions to the externality of pollution

Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae a

#### Main reasons for the existence of financial intermediaries

What are the main reasons for the existence of financial intermediaries? Define asymmetric information. What is the Asymmetric information problem of lending? Discuss the adve

#### Perfectly competitive firm maximizes profits

A perfectly competitive firm maximizes profits or minimizes losses in the short run by producing at the output level at which: Without a_________________________ of pricing ,

#### What is a share of stock in this company worth

A company earns an annual profit of \$50 million. There are 100 million share of stock outstanding. People expect a 9% return on stock. What is a share of stock in this company

#### What is the equilibrium price of bagels

Problems 1–5 are based on the graph below. At a price of \$1.50 per dozen, how many bagels are demanded per month? What is the equilibrium price of bagels? What is the equilibr

#### Many challenges to estimate when to continue to operate

When looking at firms, you will find that they are facing many challenges to estimate when to continue to operate. The challenge that a firm is going to face is to measure the

#### What is martin after-tax consumption in period two

Martin lives for two periods, earning \$50,000 in income in period 1, which he consumes or saves for period 2. The interest rate on his saving is 10% per year. Interest income

### Write a Review

#### 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!