Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 22, Problem 1P

Cost of Bank Loan

On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a $25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerly’s interest charge for the first month (assuming 31 days in the month)?

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On March 1, Minnerly Motors obtains a business loan from a local bank. Theloan is a $25,000 interest-only loan with a nominal rate of 11%. Interest iscalculated on a simple interest basis with a 365-day year. What is Minnerly’sinterest charge for the first month (assuming 31 days in the month)?
Use the average daily balance method to compute the finance charge on the credit card account for the previous month. The starting balance and transactions on the account for the month of April are given to the right. Assume an annual interest rate of 18% The finance charge is $ (Round to the nearest cant as needed.) Month: April (30 days); previous month's balance: $300 April 5 April 16 April 20 April 28 Charged $82 for a coat Made payment of $250 Charged $174 for DVDs Charged $47 for groceries
Use the average daily balance method to compute the finance charge on the credit card account for the previous month. The starting balance and transactions for the month of april are given. Assume an annual interest rate of 15%.   April-30 days (prvious months balance $430) 4/7- charged $80 4/17- made payment of 160 4/23-charged $194 4/27- charged $16       What is the finance charge?
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