8PrintRex Corporation accepted a $13,500, 10%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October11, Rex discounted the note at Park Bank at 11%. (Use Days in a year table.)a. What is the note's maturity value?Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.Maturity valueb. What is the discount period?Discount perioddaysc. What is the bank discount?Note: Use 360 days a year. Do not round intermediate calculations. Round you final answer to the nearest cent.Bank discount

A single-payment loan is one that you pay back in one lump sum at the conclusion of the agreed-upon…

Answered: Rex Corporation accepted a $13,500,…

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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PanAir Reservations (PAR) borrowed $270,000 for 36 days from its bank. The interest rate on the loan is 9 percent. Assume there are 360 days in a year. Calculate the APR and rEAR assuming the loan is a simple interest loan with no compensating balance requirement. Do not round intermediate calculations. Round your answers to two decimal places. APR: % rEAR: % Calculate the APR and rEAR assuming the loan is a simple interest loan with a 20 percent compensating balance requirement, and PAR currently holds no funds at the lending bank. Do not round intermediate calculations. Round your answers to two decimal places. APR: % rEAR: % How much would PAR have to borrow if it needed $270,000 to pay bills and the loan required a 20 percent compensating balance? Round your answer to the neares dollar. $
Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round intermediate calculations.Round the "Interest" and "Maturity value" to the nearest cent. Principal $ 2,100 Interest rate 5% Date borrowed May 9 Date repaid August 14 Exact time Interest Maturity value
The face value of a simple discount note is $4,000. The bank discount is calculated at 12% for 60 days. Use ordinary interest. Calculate:A.Amount of interest charged for noteB.Amount borrower would receiveC.Amount payee would receive at maturityD.Effective rate Note: round to the nearest hundredth of a percent
Complete the following, using ordinary interest. (Use Days in a year table.) (Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent.) Maturity value Principal Interest rate Date borrowed Date repaid $1,500 Exact time Interest 8% Mar. 12 June 15 95 %24 %24 **** T:..
A firm offers terms of 1.2/10, net 60. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2.2/10, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What effective annual interest rate does the firm earn if the terms are changed to 1.2/10, net 75, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d. What effective annual interest rate does the firm earn if the terms are changed to 1.2/15, net 60, and the customer does not…
Determine the annual financing cost of a 1-year (365 day), $9,000 discounted bank loan at a stated annual interest rate of 10.0 percent. Assume that no compensating balance is required. Round your answer to two decimal places. %
Check my Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 7%. Use the ordinary interest method. (Use Days in.a year table) (Do not round Intermediate calculations. Round your final answers to the nearest cent.) Maturity value Date of Rate of Interest Length of note Date note discounted Proceede Face value (principal) 60,600 Discount perlod Bank discount note 90 days May 13 |days June 4
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) Face Discount Value Rate (%) Date of Note Term (days) Maturity Date Bank Discount (in $) Proceeds (in $) $16,700 10 June 8 70 --Select-- O $ $ Need Help? Read It
Explain well with proper step by step Answer.
Compsny X sells on a 1/15, net 90, basis. Company Y buys goods with an invoice of $3,000. Discount= $30 Number of days= 75 C.) What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use 365 days in a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
The face value of a single discount note is $12,000. The discount is 6½% for 90 days. Use ordinary interest. Calculate the following:A.Amount of interest charged for each noteB.Amount borrower would receiveC.Amount payee would receive at maturityD.Effective rate (to the nearest tenth percent)
American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 17.25%, with interest paid monthly, what is the card's EFF%? Select the correct answer. a. 18.68% b. 12.88% c. 9.98% d. 24.48% e. 15.78%

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