Sunland Contractors borrowed $1.65 million at an APR of 7.0 percent. The loan called for a compensating balance of 15 percent. What is the effective interest rate on the loan (Round answer to 1 decimal place, e.g. 12.5%.)

Sunland Contractors borrowed $1.65 million at an APR of 7.0 percent. The loan called for a compensating balance of 15 percent. What is the effective interest rate on the loan (Round answer to 1 decimal place, e.g. 12.5%.)

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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$7500 was borrowed for a four-year term at 9% compounded quarterly. The terms of the loan allow prepayment of the loan based on discounting the loan's maturity value at 7% compounded quarterly. How long (to the nearest day) before the maturity date was the loan prepaid if the payout amount was $9380.24 including accrued interest? For the purpose of determining the number of days in a partial calendar quarter, assume that a full quarter has 91 days.
The simple interest charged on an 8-month loan of $95,000 is $974. Find the simple interest rate. (Round your answer to one decimal place.)
A mortgage loan having a face value of \$ \\$ 265,000 \$ is arranged by a mortgage broker. From this face value, the broker deducted a fee of \$ \\$ 4,000 \$. The mortgage is written at a contract rate of \$ 3.2 \\% \$ compounded semiannually for a twenty-five year term, with monthly payments. What is the annual cost of borrowing, including the brokerage fee, expressed as an effective interest rate? \$ 3.00 \\% \$ \$ 3.37 \\% \$ \$ 3.73 \\% \$ \$ 4.15 \\% \$ \$ 4.09 \\% \$
Data Back-Up Systems has obtained a $29,000, 90-day bank loan at an annual interest rate of 15%, payable at maturity. (Note: Assume a 365-day year.) a. How much interest (in dollars) will the firm pay on the 90-day loan? b. Find the 90-day rate on the loan. c. Annualize your result in part b to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances. Answers a. The amount of interest on the loan is $___. (Round to the nearest cent.) b. The effective 90-day rate is___%. (Round to two decimal places.) c. The effective annual rate is___%. (Round to two decimal places.)
The Mutt Hut Pet Shop borrowed $59,000 on March 1 for 132 days. The rate was 11% using the ordinary interest method. On day 30 of the loan, The Mutt Hut made a partial payment of $18,000, and on day 59 of the loan, The Mutt Hut made a second partial payment of $10,500. a. What is the new maturity value of the loan? Round your answer to the nearest cent. Do not round intermediate calculations. $
Statue Builders, Inc. took out a loan for $251375 that has to be repaid in 8 equal annual installments. The APR on the loan is 6.33 percent. How much of the second payment is interest?
Acme Industries Ltd. borrowed $50,000 and amortized the loan over 10 years at a rate of j1=8.00%. They will make monthly payments on the loan. a) Calculate the monthly loan payment rounded UP to the next cent: b) What is the balance owing on the loan after 3 years?
The financial officer of Toys and Noise arranges a loan of $8,500, at 8.5% interest, for 35 months. Find the amount of simple interest. (Round to the nearest cent.) O $1,445.00 O $2,107.29 O $2,528.75 O $2,914.29
one received a loan of $51,000.00 at 3.50% compounded quarterly to purchase machinery for its factory. Calculate the time period of the loan if the total amount of interest paid was $17,582.10.
9. Whirlwind Inc recently borrowed $250,000 from First Bank. At that time, the prime rate was 4%. It was a 90-day loan with interest to be paid at the end of the period with a rate that was prime plus 1.5%. (Assume a 365 day year.) What is the total interest paid on this loan?
A 18-year loan requires month - end payments of $627.33 including interest at 9.2% compounded monthly. What is the balance on the loan after half of the payments have been made? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Balance on the loan $ 45, 959.14 awarded
Suppose that a purchase is made with a credit of $27,000 that is settled with 9 monthly installments with charges of 12% simple annual on unpaid balances. Find the size of each payment assuming they are equal, and the interest

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