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1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a company borows $750,000 for six years at 12%, what would the annual loan payme nts be?

1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a company borows $750,000 for six years at 12%, what would the annual loan payme nts be?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a company borrows $750,000 for six years at 12%, what would the annual loan payme nts be? 2. Calculate the annual payment, finance costs, and principal repayments on a $400,000 loan with a 8% interest rate over four years. 3. During the next four months, a furniture manufacturer will be entering its holiday season. Management expects commercial trade receivables to reach $600,000 and will be seeking a bank loan that will finance 40% of the receivables. The bank charges 10% and an additional 1% service fee of the pledged trade receivables. The average collection period is 45 days. Calculate the company's APR for the pledged trade receivables.
Transcribed Image Text:1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a company borrows $750,000 for six years at 12%, what would the annual loan payme nts be? 2. Calculate the annual payment, finance costs, and principal repayments on a $400,000 loan with a 8% interest rate over four years. 3. During the next four months, a furniture manufacturer will be entering its holiday season. Management expects commercial trade receivables to reach $600,000 and will be seeking a bank loan that will finance 40% of the receivables. The bank charges 10% and an additional 1% service fee of the pledged trade receivables. The average collection period is 45 days. Calculate the company's APR for the pledged trade receivables.
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