Budweiser has gotten a 90-day bank loan equaling $10,000 with an annual interest rate of 15%, payable at maturity. Assume a 365-day year. How much dollar interest will the firm pay on the 90-day loan?
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Budweiser has gotten a 90-day bank loan equaling $10,000 with an annual interest rate of 15%, payable at maturity. Assume a 365-day year. How much dollar interest will the firm pay on the 90-day loan?
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- Schlitz Inc. has obtained a 90-day bank loan of $10,000 with an annual interest rate of 15%, payable at maturity. Assume a 365-day year. a. How much dollar interest will the firm pay on the 90-day loan? : b. Find the 90-day interest rate on the loanUse the information below for the next two problems. Schlitz Inc. has obtained a 90-day bank loan of $10,000 with an annual interest rate of 15%, payable at maturity. Assume a 365-day year. a. How much dollar interest will the firm pay on the 90-day loan? : b. Find the 90-day interest rate on the loan.ABC Bank sanctions a loan application for a 25 year mortage loan for US100,000. The interest rate on the loan is 12% per annum and the borrower is required to make equal monthly payments to repay the loan in 25 years. If the market interest rate goes down to 10% per annum, what will the loan be worth?
- A bank is negotiating a loan. The loan can either be paid off as a lump sum of $140,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 10%, what annual payments should be made so that both forms of payment are equivalent? A.A firm borrows $2,000,000 at 12% annual interest and wishes to pay it back with payments that increase by $50,000 per year over the 10-year life of the loan. How much would their first payment be?Van Buren Resources Inc. is considering borrowing $120,000 for 168 days from its bank. Van Buren will pay $7,000 of interest at maturity, and it will repay the $120,000 of principal at maturity. Assume that there are 365 days per year. Calculate the loan’s annual financing cost. Round your answer to two decimal places. % Calculate the loan’s annual percentage rate. Round your answer to two decimal places. %
- Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren will pay $3,000 of interest at maturity, and it will repay the $100,000 of principal at maturity. Assume that there are 365 days per year. Calculate the loan’s annual percentage rate. Round your answer to two decimal places. %Suppose you take out a $37,000 4-year balloon loan from a bank at an interest rate of 9.8%. What will be the balloon payment at the end of the loan term? Round to the nearest dollar.Singapore Post has approached a bank to take out a mortgage loan purchase a new warehouse. The bank is willing to provide them with a 10-year loan of $400,000 at an interest rate of 12% per annum, compounding monthly. Singapore Post will be required to make monthly repayments on the loan. Calculate the monthly loan instalment that will be paid on the loan. Assume that Singapore Post instead negotiates to make annual repayments on the loan. What is the annual effective interest rate on the current loan terms? Singapore Airlines has 8% $100,000 debentures outstanding in the corporate bond market, with exactly 8 years left until maturity. The bonds pays coupon half yearly. Calculate the price of the corporate bond to yield an investor 6% per annum, compounding half yearly.
- Data Back-Up Systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 15%, payable at maturity. (Note: Assume a 365-day year.) How much interest (in dollars) will the firm pay on the 90-day loan? Find the 90-day rate on the loan. Annualize your result in part b to find the effective annual rate for this loan, assuming it is rolled over every 90 days throughout the year under the same terms and circumstances.Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan?How much will Kingston Technologies have to pay each year in 7 equal payments, starting 2 years from now, to repay a $900,000 loan. The interest rate is 14% per year? Kingston Technologies will have to pay $ each year to repay the loan.