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
MrRissso [65]
3 years ago
7

Summit Record Company is negotiating with two banks for a $150,000 loan. Fidelity Bank requires a compensating balance of 26 per

cent, discounts the loan, and wants to be paid back in four quarterly payments. Southwest Bank requires a compensating balance of 13 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. The stated rate for both banks is 12 percent. Compensating balances will be subtracted from the $150,000 in determining the available funds in part a. a-1. Calculate the effective interest rate for Fidelity Bank and Southwest Bank.
Business
1 answer:
BaLLatris [955]3 years ago
8 0

Answer and Explanation:

The computation of the effective interest rate is shown below:

For Fidelity bank

= (2 × 4 × $150,000 × 0.12) ÷ (4 +1 )× ($150,000 - $18,000 - ($150,000 × 26%)

= 30.97%

For southwest bank

= (2 × 12 × $150,000 × 0.12) ÷ (12+1 )× ($150,000 - ($150,000 × 13%)

= 25.46%

You might be interested in
Kart Inc., a publishing house, allows employees to log in at their preferred time and log off after completing eight hours. It d
Naddik [55]

Answer:

flexible time

Explanation:

Since their work time is not fixed, these employees have flexible work time. Often, this kind of working time is deemed to be a non-financial work benefit, as most people prefer to define their own work time. Sometimes, it is debated if this is really beneficial for the employees.

Nonetheless, they do have to respect their daily work time slot,

3 0
3 years ago
The activities of the federal reserve board have the most direct influence on.
mamaluj [8]

Answer:

The activities of the Federal Reserve Board have the most direct influence on: bank interest rates, monetary policy (interest rates, credit, etc.) 

7 0
2 years ago
module 3 BlockWood Inc. has been providing raw materials to Couches Corp., a furniture company. The management at Couches recent
maria [59]

The correct answer to this open question is the following.

You forgot to include the options for this question. However, we can answer the following.

This scenario best illustrates forward integration.

This is a case of forward integration because BlockWood Inc., which was facing similar difficulties with other buyers too, eventually stopped supplying raw materials and took to manufacturing furniture instead. SO they decided to fabricate their own furniture.

Companies make this decision as a process of vertical integration to expand and grow their business. In this case to produce and control their own products, eliminating the retailer that had decided to pay less money for the raw materials.

So now, Blockwood Inc. has the challenge to design and sell the products it is fabricating.

6 0
3 years ago
If the Federal Reserve buys $8,500 worth of securities from non-bank public, and the non-bank public then keeps the payment from
vova2212 [387]

Answer:

c: C increases by $8,500 and the MB increases by $8,500

Explanation:

If the Federal Reserve buys $8,500 in securities from non-bank public and then payment is kept from the bank in form of cash, theC increases by $8,500 and the MB increases by $8,500

5 0
3 years ago
What do you mean by parent and host company?​
Anna11 [10]

Answer:

What is meant by parent company?

A parent company is a single company that has a controlling interest in another company or companies. Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.

Explanation:

What Is a Parent Company?

A parent company is a company that has a controlling interest in another company, giving it control of its operations

8 0
2 years ago
Read 2 more answers
Other questions:
  • PLEASE HELP ASAP!!
    7·1 answer
  • Angela wants to calculate her take-home pay. She earns $1,377 monthly. She pays federal tax of $200, state tax of $41.31, and 7.
    5·2 answers
  • The best place to search for scholarship opportunities on a college website is on the _____ pages.
    15·2 answers
  • Tim Tupper's term paper-typing business is a perfectly competitive firm in long-run equilibrium. Which of the following does not
    6·1 answer
  • Product differentiation is the process that firms use to make a product more attractive to potential customers. On which of the
    7·2 answers
  • Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 34.00% for 2 years, af
    13·1 answer
  • In which of the following scenarios would enforcement of specific performance be appropriate? Multiple Choice Your bookstore agr
    10·1 answer
  • A util is an artificial construct used as a means of measuring the A. costs of producing a good B. price of a good C. satisfacti
    11·1 answer
  • The opportunity cost of producing a pair of pants in the USA is 5 bushels of wheat, while in China, it is 2 bushels of wheat. As
    11·1 answer
  • Scenario 1
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!