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On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many compounding periods are there in a year?* O 36.5 O 73 O 7.3 O 12.17 O 18.25 O This is a renuired estion

On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many compounding periods are there in a year?* O 36.5 O 73 O 7.3 O 12.17 O 18.25 O This is a renuired estion

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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On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many compunding periods are there in 

@ docs.google.com/forms/d/e/1FAlpQLSf7X08HbtgJS4o0Ss4tF1qKm-ykEAnyxtGmp.. Q t How much is the effective cost if you need to borrow $250,000 for one year with 12% single payment interest? * 20.28% O 17.65% O 8.7% O 12% O 2.04% How would be the principal amount of loan if you need to borrow $300,000 for one year with a discount loan of 8%? O 411764.7 O 326086.96 O 24000 O 375000 O 3750000 How would be the loan discount if you need to borrow $300,000 for one year with a discount loan of 8%?* 3450000 O26086.96 276000 75000 O 111764.7 How much is the effective cost if you need to borrow $300,000 for one year with a discount loan of 8%? * 12% O 20.28% O 17.65% O 2.04% O 8.7% How much is the loan amount if you need to borrow $350,000 for one year with 9% single payment interest and a 15% compensating balance. O 411764.71 O 24000 O 3750000 O 315000 O 326086.96 How much is the compensating balance if you need to borrow $350,000 for one year with 9% single payment interest and a 15% compensating balance.
Transcribed Image Text:@ docs.google.com/forms/d/e/1FAlpQLSf7X08HbtgJS4o0Ss4tF1qKm-ykEAnyxtGmp.. Q t How much is the effective cost if you need to borrow $250,000 for one year with 12% single payment interest? * 20.28% O 17.65% O 8.7% O 12% O 2.04% How would be the principal amount of loan if you need to borrow $300,000 for one year with a discount loan of 8%? O 411764.7 O 326086.96 O 24000 O 375000 O 3750000 How would be the loan discount if you need to borrow $300,000 for one year with a discount loan of 8%?* 3450000 O26086.96 276000 75000 O 111764.7 How much is the effective cost if you need to borrow $300,000 for one year with a discount loan of 8%? * 12% O 20.28% O 17.65% O 2.04% O 8.7% How much is the loan amount if you need to borrow $350,000 for one year with 9% single payment interest and a 15% compensating balance. O 411764.71 O 24000 O 3750000 O 315000 O 326086.96 How much is the compensating balance if you need to borrow $350,000 for one year with 9% single payment interest and a 15% compensating balance.
On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many days is the effective borrowed fund? * O 5 days O 10 days O 30 days O 50 days O 20 days On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many compounding periods are there in a year? 36.5 O 73 O 7.3 12.17 18.25 This is a reguredqueatic8 On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day? O 10% O 2.04% О 109% O 1.09% O 104% On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day?* O 1.09% O 10% O 104% O 109% O 2.04% On a 365-day basis, using a trade credit terms of 2/10, net 30, and payment is made on the twentieth day. What does 2 represent? * O discount rate O annual rate O interest rate O rate per period O effective rate
Transcribed Image Text:On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many days is the effective borrowed fund? * O 5 days O 10 days O 30 days O 50 days O 20 days On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many compounding periods are there in a year? 36.5 O 73 O 7.3 12.17 18.25 This is a reguredqueatic8 On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day? O 10% O 2.04% О 109% O 1.09% O 104% On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day?* O 1.09% O 10% O 104% O 109% O 2.04% On a 365-day basis, using a trade credit terms of 2/10, net 30, and payment is made on the twentieth day. What does 2 represent? * O discount rate O annual rate O interest rate O rate per period O effective rate
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