You lend a friend ​$10,000​, for which your friend will repay you ​$27,027 at the end of 5 years. What interest rate are you charging your​ "friend"?       Question content area bottom Part 1 The interest rate you are charging your friend on the loan is enter your response here​%.

Q: A firm is considering leasing or buying a mower. The mower costs $1000 and can be depreciated and…

A: We first compute the written down value of the mower. Then we compare the sale price to compute the…

Q: A firm has an ROA of 11%, a 6% profit margin, and an ROE of 23%. What is its equity multiplier?

A: A quantitative method that provides information about the company including its liquidity,…

Q: Firm wishes to maintain an sustainable growth rate of 12 percent and a dividend payout ratio of 52…

A: Sustainable growth rate = 12%Dividend payout ratio = 52%Retention ratio, b = Using the formula for…

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Q: A precision lathe costs $18,000 and will cost $28,000 a year to operate and maintain. If the…

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A: 1.In a recession, the cash flow= $93 million which will be paid fully to bondholders.(Amount paid to…

Q: The IRR of A (C → B) is%. (Round to one decimal place.)

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Q: Use the following information to answer the question that follow: Net Income : $205,000 Profit…

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Q: Jerry wants to take the next three years off work to travel around the world. He estimates his…

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Q: QUESTION 2 You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you…

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.