Construction Accounting And Financial Management (4th Edition)

4th Edition

ISBN: 9780135232873

Author: Steven J. Peterson MBA PE

Publisher: PEARSON

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Textbook Question

Chapter 16, Problem 43P

Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days and a nominal interest rate of 8%. The bank discounts the interest.

How would the effective annual interest rate for Problem 43 change if the bank charged $1,000 in closing costs?

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Chapter 16, Problem 42P

Chapter 16, Problem 44P

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Chapter 16 Solutions

Construction Accounting And Financial Management (4th Edition)

Ch. 16 - Prob. 1DQ Ch. 16 - What is the annual percentage yield (APY)?Ch. 16 - What is the difference between fixed and variable...Ch. 16 - Prob. 4DQ Ch. 16 - What is the purpose of a subordination clause in a...Ch. 16 - Prob. 6DQ Ch. 16 - What is maturity matching?Ch. 16 - What is an amortization schedule?Ch. 16 - What is a good faith estimate?Ch. 16 - How do closing costs affect the effective interest...

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Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days and a nominal interest rate of 8%. The bank discounts the interest. How would the effective annual interest rate for Problem 43 change if the bank charged $1,000 in closing costs?

Solution Summary: The author explains the effective annual interest rate at which the bank discounts is 8.57%.

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Chapter 16 Solutions