5. If this loan had been made on a 10% add-on basis payable in 12 end-of-month installments, that would be the monthly payments? What is the annual percentage rate? The effective annual rate? ($45,833.33, 17.97%, 19.53%) E • How does the cost of costly trade credit generally compare with the cost of shortterm bank loans?

5. If this loan had been made on a 10% add-on basis payable in 12 end-of-month installments, that would be the monthly payments? What is the annual percentage rate? The effective annual rate? ($45,833.33, 17.97%, 19.53%) E • How does the cost of costly trade credit generally compare with the cost of shortterm bank loans?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q1: If a loan of 12.5 million is made for a period of 33 days at a rate of 8,25% per annum, what is the total amount repayable at the end of the period? Assume 365/365 days in the year. 12,593,236.30 12,583,236.30 10,573,287.67 10,853,25.52 which one is correct please help.
5. [1] The annual effective rate (AER) on a loan in 12.87%. What annual percentage rate (APR) is it based on? (Note: you do not need extra information to figure it out.)
Q7. What is the effective interest rate on a loan which charges 3.75% p.a. interest compounded monthly?
Mf4. You've worked out a line of credit arrangement that allows you to borrow up to $80million at any time. The interest rate is0.61 percent per month. In addition, 4 percent of the amount that you borrow must be deposited in a non-interest-bearing account. Assume that your bank uses compound interest on its line of credit loans. Required: (a)What is the effective annual interest rate on this lending arrangement? (Do not round your intermediate calculations.) (b)Suppose you need $16 million today and you repay it in 6 months. How much interest will you pay? (Do not round your intermediate calculations.)
If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months. What is the simple interest discount rate? A. 1.75% В. 1.74% С. 1.73% Answer:
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