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lesya [120]
3 years ago
8

​(Estimating the cost of bank credit​) Paymaster Enterprises has arranged to finance its seasonal​ working-capital needs with a​

short-term bank loan. The loan will carry a rate of 1616 percent per annum with interest paid in advance​ (discounted). In​ addition, Paymaster must maintain a minimum demand deposit with the bank of 1111 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ​$120 comma 000120,000 for a period of 44 ​months, what is the effective cost of the bank​ loan? Hint​: Assume the Paymaster does not have sufficient funds in the bank to satisfy the compensating balance requirement.
Business
1 answer:
damaskus [11]3 years ago
4 0

Answer:

19.12%

Explanation:

Annual interest rate = 16%

Minimum demand deposit = 11%

Loan = 120,000

Months = 4

First, we calculate the interest expense for the 4-month loan as follows:

Interest = 0.16 × $120,000 × 4 ÷ 12

             = $6,400

Assuming that Paymaster has to leave 11% of the loan idle in a compensating balance,the effective cost of credit can be calculated as follows:

APR = [$6,400 ÷ ($120,000 - 13,200 - 6,400)] × (12÷4)

       = 19.12%

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Answer

Explanation:

Có tài liệu về tài sản cố định (TSCĐ) trong tháng 5/2021 của công ty B như sau:

Ngày 1/5 6/5 12/5 15/5 20/5 31/5

Số lượng TSCĐ (cái) 600 750 800 550 700 860

Tính số lượng TSCĐ bình quân của doanh nghiệp B trong tháng 5? Trong nửa đầu tháng 5 (từ ngày 1 đến ngày 15), trong nửa cuối tháng 5 (từ ngày 16 đến ngày 31), trong 15 ngày cuối tháng 5 (từ ngày 17 đến ngày 31)? Cho nhận xét sơ bộ về thực trạng sử dụng TSCĐ của công ty, từ đó đề xuất một số biện pháp sử dụng hiệu quả TSCĐ cho công ty?

4 0
3 years ago
When using capital rationing, unfunded proposals a.are discarded for purposes of decision making for all future plans. b.are alw
VikaD [51]

Answer:

Correct Answer:

a. are discarded for purposes of decision making for all future plans.

Explanation:

In business organization, there will be situations where there will be need to ration the capital used in the business for effective running of the business. <em>When there is an ongoing project, the project expenses would be rationed in such a way that, relevant ones would receive attention from the megre capital fund while unfunded proposal would be discarded.</em>

6 0
4 years ago
Fellingham Corporation purchased equipment on January 1, 2019, for $400,000. The company estimated the equipment would have a us
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Answer:

Answer not in the given option, please recheck for error.

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Experts use different risk assessment methods and approaches. Technical experts assign same weights to different ways of dying so they assign equal weights to hazards that take many lives at one time and to hazards that many lives at once.

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