What is the effective interest rate of the loan

Assignment Help Accounting Basics
Reference no: EM132737177

Question - My Hope Company is negotiating for a 4-month discounted loan for P200,000, at 12% per annum. The negotiated loan requires a 20% compensating balance. What is the effective interest rate of the loan?

Reference no: EM132737177

Questions Cloud

What tools are used to measure and monitor performance : What is the management function of controlling as related to performance improvement? What tools are used to measure and monitor performance?
Discuss the mitigation required or implemented : Describe the incident and identify the toxic material(s) involved. Discuss the mitigation required or implemented.
What are concerns about person exit from the company : Discuss, in general, the benefits of turnover to the organization, and compare it to turnover that is unhealthy for the organization.
Identify any fundamentals of business or capitalism involved : 1. List the stakeholders involved and their influence. Identify any fundamentals of business or capitalism involved.
What is the effective interest rate of the loan : Question - My Hope Company is negotiating for a 4-month discounted loan for P200,000, What is the effective interest rate of the loan
Determining egress requirements : How are design occupant load, gross and net floor areas used in determining egress requirements?
What changes would need to be made to render ethical : Describe a research study that used human subjects and did not follow the ethical tenets you learned about last week. The study should be based in the marketing
Describe a research study that used human subjects : Describe a research study that used human subjects and was properly done from an ethical standpoint. The study should be based in the marketing or business
Hunting versus gathering in foraging societies : What is the most accurate description of the relative importance of hunting versus gathering in foraging societies in terms of nutrition? In terms of place in s

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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