1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergey [27]
3 years ago
15

A company issued a short-term note payable to a bank with a stated 12 percent rate of interest . The bank charged a .5% loan ori

gination fee and remitted the balance to the company. The effective interest rate paid by the company in this transaction would be
Business
2 answers:
Mandarinka [93]3 years ago
8 0

Answer:

17%

Explanation:

If a company issued a short-term note payable to a bank with a stated 12 percent rate of interest and in addition the bank charged a .5% loan origination fee and remitted the balance to the company. The effective interest rate paid by the company in this transaction would be 17%

The effective annual interest rate is <u>the interest rate that is actually earned or paid on an investment, loan</u> or other financial product.

Hence, since the company is both paying the initial 5% and the later 12%, effectively the company is paying 17% on the note payable.

xeze [42]3 years ago
3 0

Answer:

B) More than 12.5%

Explanation:

Loan origination fees lower the amount of money that a borrower receives and increases the total interest paid. In this case, the borrower received 99.5% of the total loan amount. If the buyer has to pay 12% interest on the total amount of the loan, he/she will be actually paying more interest than the stated amount.

For example, the total loan value is $100, but you will receive only $99.50. You have to pay $12 in interests for the loan, so the actual interest paid = ($12 + $0.50) / $99.50 = 12.56%

You might be interested in
Laura has started saving so she can be ready for any emergency situation that might involve a huge expense. The most important r
inessss [21]

Answer:

liquidity

Explanation:

6 0
4 years ago
Read 2 more answers
If you accept a job as a domestic security analyst for a brokerage firm, you are most likely working in which one of the followi
Sonbull [250]

Answer:

Investments

Explanation:

If I choose to work as a domestic security analyst for a brokerage firm, I will probably choose to work in the investment sector of the firm. The domestic security analyst usually examines investment opportunities and performs market analysis. A domestic security analyst is the one who is responsible for analyzing other competitors, firms and industries and giving a recommendation regarding possible new ventures and investment opportunities.

5 0
3 years ago
I’m thinking the 2nd answer idk<br> Help please
muminat

yes it's B even tho it could be possible its the worst example :)


4 0
4 years ago
Sandy is a single taxpayer who collected Social Security benefits of $22,000. The Social Security benefits were her only income
butalik [34]

Answer: $0

Explanation:

A tax is a levy that's being paid to the government which is basically used to improve the economy and provide necessary infrastructural facilities.

Once an individual has an income that's less than $25,000, social security won't be taxed. In this scenario, Sandy has an income of $22000, therefore she won't be taxed.

8 0
3 years ago
Parkway Void Co. Issued 17-year bonds two years ago at a coupon rate of 9.1 percent. The bonds make semiannual payments. If thes
Lerok [7]

Answer:

7.53%

Explanation:

the yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

  • coupon = $1,000 x 9.1% x 1/2 (semiannual) = $45.50
  • face value = $1,000
  • market value = $1,000 x 115% = $1,150
  • n = (7 years - 2 years) x 2 semiannual periods = 30

YTM = {$45.50 + [($1,000 - $1,150)/30]} / [($1,000 + $1,150)/2] = $40.50 / $1,075 = 3.7674% x 2 = 7.5349% ≈ 7.53%

4 0
3 years ago
Other questions:
  • Match each item with a statement below. Works with the remainder of the organization to assist in the recovery of nontechnology
    5·1 answer
  • Lisa sells business property with an adjusted basis of $237,800 to her son, Alfred, for its fair market value of $190,240.
    15·1 answer
  • Resellers for universal containers need access to reports in the partner communities to help manage their opportunities.how shou
    9·1 answer
  • In which of the following situations would someone have to pay a gift tax?
    5·1 answer
  • A firm evaluates all of its projects by applying the IRR rule. The required return for thefollowing project is 21 percent. The I
    11·1 answer
  • Yoda signs a covenant not to compete with his employer, Penultimate Sales Corporation. A court decides that the covenant is over
    10·1 answer
  • Grand Canal Incorporated issued 10-year bonds six years ago with an annual coupon rate of 9.625% APR. The bonds have a face valu
    6·1 answer
  • Consider the following set of numbers:
    5·1 answer
  • Tabitha just had a conversation with her boss in which he told her that there would be some future layoffs due to budget cuts. T
    11·1 answer
  • Question 4(Multiple Choice Worth 4 points)
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!