calculate the percent interest rate and effective cost, Cost Accounting

1. The following three one-year "discount" loans are available toyou:

Loan A: $120,000 at a 7 percent discount rate

Loan B: $110,000 at a 6 percent discount rate

Loan C: $130,000 at a 6.5 percent discount rate

a. Determine the dollar amount of interest you would pay oneach loan and indicate the amount of net proceeds each loanwould provide. Which loan would provide you with the mostupfront money when the loan takes place?

b. Calculate the percent interest rate or effective cost of eachloan. Which one has the lowest cost?

4. ATM Banc has the following liabilities and equity categories:

Deposits $9 million

Other liabilities $4 million

Owners' capital ?

Total liabilities and capital ?

a. What would be the bank's total liabilities and capital ifowners' capital were half the size of other liabilities?

b. If total liabilities and capital were $15.5 million, what wouldbe the amount of the loans?

c. If total liabilities and capital were $14 million, and $1 millionof deposits were withdrawn from the bank, what would bethe amount of the owners' capital?

7. Rearrange the following accounts to construct a bank balancesheet for Second National Bank. What are the total amounts thatmake the bank's balance sheet balance?

Demand deposits: $20 million                                 Government securities owned: $7 million

Cash assets: $5 million                                             Bank fixed assets: $14 million

Loans secured by real estate:                                  Time and savings deposits:

$30 million                                                                 $40 million

Commercial and industrial loans:                             Federal funds purchased:

$18 million                                                                 $6 million

Owners' capital: $6 million                                      Other long-term liabilities: $2 million

Posted Date: 2/19/2013 1:05:53 AM | Location : United States







Related Discussions:- calculate the percent interest rate and effective cost, Assignment Help, Ask Question on calculate the percent interest rate and effective cost, Get Answer, Expert's Help, calculate the percent interest rate and effective cost Discussions

Write discussion on calculate the percent interest rate and effective cost
Your posts are moderated
Related Questions
A local government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts

Definition of Variance Analysis Variance analysis can merely be defined like the process of analyzing the difference between the actual cost and the standard cost this variati

what are the classifications of labour costs? what is employee psyche?

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

Alger Corp wants to buy some construction equipment for $50,000, which has a useful life of 4 years with no salvage value. Alger uses straight-line depreciation. Alger has a tax ra

Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid

Regression Analysis Method of Cost Estimation It includes estimating the cost function by utilizing past data or the dependent and the independent variables. Hence the cost fu

the following information relates to process 3 of a three stage production process for the month of january 2014. opening inventury 300 units comlete as to; material from proces

You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the proposal, you note that there are 500 material items, but y

weekly working hour 48 , hourly wage rate 15$ , price rate per unit 6$ , normal time taken per piece 36 minuets , normal output per week 220 pieces , actual output per week 275 pie