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c. If total liabilities and capital were $14 million, and $1 millionof deposits were withdrawn from the bank, what would bethe amount of the owners' capital?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
The credit term from the supplier is 2/30, net 60. Requirements: Write the calculation Determine the effective annual rate if the firm does not take the discount.

These balances for a company x Raw materials $40,000 Work in process $30,000 Finished goods $60,000 for the current year the company estimated that it would work 150.000 mach

A CPA firm estimates that an audit will require the following work: Type of Auditor Expected Hours Cost per Hour Standard Costs Manager 10 $50 $ 500 Senior 20 40 800 Staff 40 30

Dividends                                                                                        ................ Non-operating losses not passed through P and L A/c

Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share

On a New product development process of making a new S3 STORAGE SIM card phone storage device for end users, forecast the following With full working and tabulations; a) With fu

list and explain all the procedures of material control

raw an organization chart of any actual or hypothetical manufacturing organization to show the position of management/cost accounting department within an organization and discuss

#purchase price R45 order costs R175 lead time 6 days cost of capital (after taxation) 20% direct inventory holding costs R25 annual demand 8500 units business operational 330day p

The Accountant has also asked for you to assist in preparing the statement of financial position (balance sheet) for the Construction in Building partnership for the year ended 30