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
weeeeeb [17]
3 years ago
12

The Lodge borrowed $2,000,000 for five years at an annual interest rate of 9% from the Merchant Bank, which required a $100,000

compensating balance. What was the effective interest rate for the loan?(rounded to the nearest tenth of one percent)
a) 9.0%
b)9.5%
c)10.0%
d)10.5%
Business
1 answer:
AleksandrR [38]3 years ago
4 0

Answer:

option (b) 9.5%

Explanation:

Data provided in the question:

Loan Amount = $2,000,000

Annual interest rate = 9%

Required compensating balance = $100,000

Now,

Effective interest rate(EIR)

= (loan × Annual interest on loan) ÷ (Loan - Required compensating balance)

= ($2,000,000 × 9% ) ÷ ( $2,000,000 - $100,000 )

= ($2,000,000 × 0.09 ) ÷ ( $1,900,000 )

= 0.0947 ≈ 0.095

or

= 0.095 × 100%

= 9.5%

Hence,

the answer is option (b) 9.5%

You might be interested in
The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicate
Nikitich [7]

Answer: $164,300

Explanation:

Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.

= Beginning dividends payable + Dividends for the year - Ending dividends

= 43,200 + 160,000 - 38,900

= $164,300

8 0
3 years ago
Why do you think Bill Bowerman liked that Tinker shared his thoughts about the test shoes
kompoz [17]

Answer:

to connect

Explanation:

make moneyghgghgjjvyiv

5 0
3 years ago
Jewell-rung was a canadian corporation that imported and sold men's clothing wholesale. haddad was a new york corporation that m
Oxana [17]
<span>Lost profits are consequential damages. Haddad is right that a buyer may not recover consequential damages that it could have prevented by cover. But Jewell-Rung offered legitimate reasons for not covering: the only Lakeland garments now available to it were those made by Olympic. Olympic would not sell a competitor the garments at reasonable prices. Further, Jewell-Rung could not rely on the quality of the garments manufactured by a different company. Jewell-Rung's failure to cover was reasonable and the company was entitled to prove its lost profits. Jewell-Rung Agency, Inc. v. Haddad Organization, Ltd</span>
6 0
3 years ago
Question 4
denis23 [38]

Answer:

B. Accounts Receivable

7 0
3 years ago
Read 2 more answers
________________ and __________________ are creating customers who are educated about their needs and all the available options
iogann1982 [59]

Demand and supply are creating customers who are educated about their needs and all the available options for meeting those needs.

Demand is when people are willing to buy and pay for goods and services at a certain time, while supply is the amount of goods and services available by suppliers to consumers.

There is usually an interaction between the sellers of a resource and the buyers for that resource hence supply create and make available resources while demand pay for the available resources.

Therefore, Demand and supply are creating customers who are educated about their needs and all the available options for meeting those needs.

Learn more: brainly.com/question/4803223

3 0
2 years ago
Other questions:
  • Club A offers membership for a fee of $ 23 plus a monthly fee of $ 29. Club B offers membership for a fee of $ 27 plus a monthly
    6·1 answer
  • The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses
    15·1 answer
  • Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interes
    12·1 answer
  • Hardy Company is a wholesale electronics distributor. On December 31, 2008, it prepared the following partial income statement:
    8·1 answer
  • Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances: a. the
    10·2 answers
  • On February IN , Marshak's investment account has a balance Of $19,800. He deposited ,200 on April I and $2,600 on May l . He wi
    10·1 answer
  • Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current assets and $440,000 in perma
    11·1 answer
  • Roddy Rich is a very astute entrepreneur and wants to invest in an asset that will require high maintenance with disregard for s
    8·1 answer
  • Please help! I am using plato! :))
    15·1 answer
  • Tyler's net income is approximately $40,000 annually. He has borrowed
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!