A company plans to take $1000000 bank credit for 11 years whilei=40%. After some negotiations, manager of the company convince the bank for i=38%. The decrease in interest rate result in a decrease in total debt. What is the approximate percantage of debt decrease? O a. 10% O b. 20% O c. 15% d. 8%

A company plans to take $1000000 bank credit for 11 years whilei=40%. After some negotiations, manager of the company convince the bank for i=38%. The decrease in interest rate result in a decrease in total debt. What is the approximate percantage of debt decrease? O a. 10% O b. 20% O c. 15% d. 8%

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

Problem 1PS

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Assume a bank’s review of its historical loan losses has been estimated at 2% for its auto loans. The interest rate is 6%. The bank currently has gross auto loans of $1,000,000. If the bank determines that the optimal or desired rate (r) for its auto loans is 7.8% 12% 13% 6.44% 9.13% 8.16% 10.68%
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Suppose a bank makes a two-year $20,000 loan with the entire principal amount due in two years at an annual rate of 4.25%. The bank funds this with a six-month $20,000 CD at a cost of 1.75%. What is the bank's six month static GAP? O $20,000 O $10.000 O $0 O $10,000 O $20,000
How do i calculate this corporate finance problem without using excel? You will be paying off a mortgage of $100,000 over the next 25 years. You have signeda loan agreement with the Toronto Dominion Bank to secure a rate of 15.4%, however youare planning to re-negotiate the loan at the end of 10 years, how much will your payments be over the first 10 years? What is the amount of principal that you paid off with the first payment?
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A firm borrows $255,000 from a bank and agrees to pay back the bank over 4 years at 12%. What are the total finance charages? Group of answer choices $25,384.22 $67, 326.15 $22, 924.66 $13, 872.19 $650.00 $ 20,879.60 $183, 487.11 $6.87 $1,892, 660.66 $1,988, 374.34 $1,765, 147.96
A bank makes a 5-year $75,000 loan with no principal payments in years 1-2 and principal payments of $25,000 in Years 3, 4 and 5. The interest rate is 8% and will be paid every year. What interest and principal is paid in year 4 A $6,000 + $25,000 B $6,000+$50,000 C $4,000+$25,000 D $4,000+$50,000

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