The treasurer of Brandon Blue Sox is seeking a $26,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $2,100 in the firm's chequing account. These funds could count toward meeting any compensating balance requirements. What is the annual rate of interest on this loan?
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The treasurer of Brandon Blue Sox is seeking a $26,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $2,100 in the firm's chequing account. These funds could count toward meeting any compensating balance requirements. What is the annual rate of interest on this loan?
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- You go to the loan fund of the company where you work and find that they have an emergency fund whose regulations establish that the credits will be paid in monthly installments for 12 months, and that the installments 3,6,9 and 12 will be double the others. Likewise, the interest is 3 % per month. The amount that they will lend depends on the installment. a) If you are loaned $500,000, what will the normal payments be? b) If your regular payments are $10,000, what would be the value of the loan?The treasurer of Brandon Blue Sox is seeking a $29,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $2.400 in the firm's chequing account. These funds could count toward meeting any compensating balance requirements. What is the annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Annual rate of interestThe treasurer of Brandon Blue Sox is seeking a $29,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $2,400 in the firm’s chequing account. These funds could count toward meeting any compensating balance requirements. What is the annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate
- Mr samuel approached the arnett national bank for a 15,000 loan to purchase vehicle the bank charges interest at the rate of 18 percentage per annum for the duration of the loan the bank also charges the followin fees :BANK FEES 8 percent, stamp duty 0.1 percent,legal fees 7.5 percent, application fee 1 percent a 20 percent deposit of the amount of the loan must also be made if the loan is approved .Calculate: the total amount paid of the fees charged by bankSuppose you secure a home improvement loan in the amount of $5,000 from a local bank. The loan officer gives you the following loan terms:• Contract amount = $5,000• Contract period = 24 months• Annual percentage rate = 12%• Monthly installment = $235 .37Shown is the cash flow diagram for this loan. Construct the loan payment schedule by showing the remaining balance, interest payment, and principal payment at the end of each period over the life of the loan.A local finance company will loan $15,000 to a homeowner. It is to be repaid in 36 monthly payments of $588 each. The first payment is due 30 days after the $15,000 is received. What interest rate per month are they charging?
- Van Buren Resources Inc. is considering borrowing $100,000 for 182 days from its bank. Van Buren will pay $6,000 of interest at maturity, and it will repay the $100,000 of principal at maturity. a. Calculate the loan’s annual financing cost. b. Calculate the loan’s annual percentage rate. c. What is the reason for the difference in your answers to Parts a and b?A local finance company quotes an interest rate of 16.7 percent on one-year loans. So, if you borrow $25,000, the interest for the year will be $4,175. Because you must repay a total of $29,175 in one year, the finance company requires you to pay $29,175/12, or $2,431.25 per month over the next 12 months. Is the interest rate on this loan 16.7 percent? What rate would legally have to be quoted? What is the effective annual rate?A local finance company quotes a 12 percent interest rate on one-year loans. So, if you borrow $30,000, the interest for the year will be $3,600. Because you must repay a total of $33,600 in one year, the finance company requires you to pay $33,600/12, or $2,800.00, per month over the next 12 months. a.What rate would legally have to be quoted? b.What is the effective annual rate?
- A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $30,000, the interest for the year will be $5,100. Because you must repay a total of $35,100 in one year, the finance company requires you to pay $35,100/12, or $2,925.00, per month over the next 12 months. a. What rate would legally have to be quoted? b. What is the effective annual rate?A local finance company quotes a 17% Interest rate on one-year loans. So, if you borrow $25.000, the interest for the year will be $4,250. Since you must repay a total of $29.250 in one year, the finance company requires you to pay $29,250/12, or $2.43750, per month over the next 12 months. Is this a 17% loan? What rate would legally have to be quoted? (Do not round intermediate calculations. Round the final answer to 2 decimal places) Annual percentage rate 1% What is the effective annual rate? (De not round intermediate calculations. Round the final answer to 2 decimal places) Effective annual rateMelody Dairy has a line of credit with its bank. The firm plans to borrow $400,000 at a rate of 10 percent. The bank requires a 15% compensating balance and the firm currently maintains $20,000 in its account at the bank that can be used to meet the compensating balance requirement. Determine the annual finance cost to Melody of this loan.