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
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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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
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.
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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