please answer within 30 minutes. Problem 14-9 Compensating Balance (LG14-7)a. What interest rate would make it worthwhile to incur a compensating balance of $16,000 in order to get a 1-percent lower interestrate on a 1-year, pure discount loan of $255,000? (Negative amount should be indicated by a minus sign. Do not roundintermediate calculations and round your answer to 2 decimal places.)%Interest rateb. Is it worth incurring the compensating balance to obtain the lower rate?O YesO No

The compensating balance is the bare minimum that the borrower agrees to retain with the lender; it…

Answered: a. What interest rate would make it…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare journal entries to record the following transaction: Ikeo Inc. sold $100,000 of gift cards during the last 2 weeks of December 2020
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What is the guest ledger? Give an example of something included in it. Describe how you would post a check for prepayment of two nights’ room rate.
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A customer opens a certificate of deposit of $909,642. The current CD-rate is 9% and the CD duration is 162 days. What is the amount due to the customer at expiration of the CD? Round your answer to the nearest two decimals if needed. Do not type the $ symbol.
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Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j2=2.23% from 1/7/2021 to 30/9/2021 and j2=4.3% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places. a. 3032.601 b. 3033.695 c. 3032.335 d. 3031.814
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