What interest rate is the bank required to report

Assignment Help Finance Basics
Reference no: EM13294678

First Century Bank wants to earn an effective annual return on its consumer loans of 10 percent per year. The bank uses daily compounding on its loans. By law, what interest rate is the bank required to report to potential borrowers?

Reference no: EM13294678

Questions Cloud

Explain regard to minimizing the number of transfer steps : You wish to extract an organic compound from an aqueous phase into an organic layer (3 to 6 extractions with a separatory funnel). With regard to minimizing the number of transfer steps,
Determine if the cfo salary data are skewed : Calculate the mean salary of the CFOs and based on measures of the center of the data; determine if the CFO salary data are skewed.
Determine time it takes to process multiplication operation : determine the time it takes to process the multiplication operation in the binary multipler described. Assume that the Q register has n bits and the clock cylcle is t nanoseconds.
What is the magnitude of the tension force in the string : A massless frictionless pulley, an ideal string, and two masses (m1 = 2.50 kg and m2 = 4.00 kg) are connected together, What is the magnitude of the tension force in the string
What interest rate is the bank required to report : First Century Bank wants to earn an effective annual return on its consumer loans of 10 percent per year. The bank uses daily compounding on its loans. By law, what interest rate is the bank required to report to potential borrowers?
Determine the resonant frequency-q and bandwitdh : A variable-frequency voltage source of value 12cos(wt) drives a network with a resistor of value 12 ohms, an inductor of value 50mH, and a capacitor of value 5uF, all in series, in that order.
Assuming that interest rates and expectations about the : What is the spot exchange rate, E$/CD? Assuming that interest rates and expectations about the future exchange rate remain unchanged, will the spot exchange rate change over time?
For which fuel is this a more appropriate gauge : A simple fuel level gauge can use the dielectric constant of the fuel to indicate its level in a tank. For which fuel is this a more appropriate gauge
Define the organic compound di-n-butyl phthalate : The organic compound di-n-butyl phthalate, C16H22O4(l), is sometimes used as a low-density (1.046 g·mL-1) manometer fluid. Compute the pressure (in torr) of a gas that supports a 507-mm column of di-n-butyl phthalate

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the after-tax cost of each component of capital

The Mortgage bonds are currently selling for $1,073.61. The bonds are 7%, $1,000 par and pay interest annually. They will mature in 10 years.

  Time value of money in economic decisions

Please describe why the time value of money is significant in an economic decision and how NPV and payback period are used in business to incorporate the time value of money into operational decision.

  Computation of effective annual yield bond value

Computation of effective annual yield bond value Assume that the 5-year bond paying $40 semi-annually is purchased at par

  What is the shareholders equity

Culligan, Inc., has current assets of $26,293, net fixed assets of $128,720, current liabilities of $17,380, and long-term debt of $52,242.

  Computation of weighted average cost of capital

Computation of weighted average cost of capital with given data and how does the company's debt to equity mix impact this cost of capital

  Define working capital

Define working capital. What is the difference between working capital and net working capital?

  Types of risks faced by investors in bonds

In brief explain the types of risks faced by investors in domestic bonds? Also point out the additonal risks associated with nondomestic bonds. Describe the differece between Stocks and Bonds and which one Corporations use most to raise capital.

  What is the internal rate of return of a project

What is the internal rate of return of a project that requires and investment of $1366 today and provides a single cash flow in year 5 of $1945. The appropriate discount rate is 10%.

  What is the expected percentage return on this stock

You forecast that there is a 30% chance the stock will sell for $30.00 at the end of one year. The alternative expectation is that there is a 70% chance the stock will sell for $10.00 at the end of one year. What is the expected percentage return ..

  Show the taxable income of otter

Show the impact of this information on the taxable income of Otter, Ellie, and Linda if Otter is

  Using the theory of optimal bank funds management

Using the theory of optimal bank funds management, please write an essay (3/4 - 1 pg) discussing some of the implications for what we should see US banks doing and whether US banks seems to operate according to these basic principles.

  Determining stock value

Better Life Nursing Home, Inc. has maintained dividend payment of $4 per share for many years. The same dollar dividend is expected to be paid in future years. Determine the value of company's stock.

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