Current Attempt in Progress The Cullumber Bank requires borrowers to keep an 10 percent compensating balance. Gorman Jewels borrows $480,000 at a 8 percent stated APR. What is the effective interest rate on the loan? What is the effective interest rate (Round answer to 2 decimal places, e,g. 12.25%.
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- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383Navy Bank requires borrowers to keep a 13 percent compensating balance. Gorman Jewels borrow $380,000 at a 6 percent stated APR. What is the effective interest rate on the loan? (Round answer to 2 decimal places, e.g. 12.25%.) Effective interest rate ________ %The First Bank of Lending lists the following APR for loans. Determine the APY, or effective interest rate, for a loan amount that is less than $20,000. Express your answer as a percentage rounded to the nearest hundredth of a percent, if necessary. First Bank of Lending Loan APR Loan Amount APR* <$20,000 12.25% $20,000–$99,999 9.99% >$99,999 6.75%
- Chase Bank offers your firm a discount interest loan at 9 percent for up to $33 million and, in addition, requires you to maintain a 6 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual interest rate % SuomiCome and Go Bank offers your firm a discount Interest loan with an interest rate of 10 percent for up to $26 million, and in addition requires you to maintain a 2 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.32.16.)Cheap Money Bank offers your firm a discount interest loan with an interest rate of 9.85 percent for up to $25 million, and in addition requires you to maintain a 4.5 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Effective annual rate %
- www Will You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, th bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of the loan. What is the effective annuall interest rate on the loan, taking account of the impact of the initiation fee? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Effective annual interest rate 19.98 % < PrevThe First Bank of Lending lists the following APR for loans. Determine the APY, or effective interest rate, for a loan amount that is less than $20,000. Round your answer to the nearest hundredth, if necessary. First Bank of Lending Loan APR Loan Amount APR* <$20,000 12.25% $20,000–$99,999$ 9.99% >$99,999 6.75% * interest rates are compounded quarterlyOn September 1, 2024, Hiker Shoes issued a $108,000, 6-month, noninterest-bearing note. The loan was made by Second Commercial Bank where the stated discount rate is 10%. Hiker's effective interest rate on this loan is: Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Multiple Choice O о O 10.46%. 10.00%. 10.45%. 10.53%
- NOP Co. has agreed to the following loan proposal by a bank:▪ Stated interest rate of 10% on a one-year discounted note ▪ 15% of the loan as compensating balance with zero-interest current account to be maintained with the bank. ▪ The loan will have net proceeds of P1,500,000. Required:1. How much is the principal amount of the loan?First National Bank charges 10.4 percent compounded monthly on its business loans. First United Bank charges 10.6 percent compounded semiannually. Calculate the EAR for each bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) First National Bank % First United Bank % As a potential borrower, which bank would you go to for a new loan?Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the amount (in $) of interest for the loan. (Round your answers to two decimal places.) Principal Rate (%) Time (days) Exact Interest Ordinary Interest $10,000,000 10 1 $ ___ $ ____