Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Your firm has a line of credit with your local bank for 50,000 dollar. The loan agreement calls for interest of 9 percent with a 5 percent compensating balance requirement which is based on the total amount borrowed. Determine the effective interest rate if you need 42,750 dollar for one year to cover your operating cost?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917701

Have any Question? 


Related Questions in Basic Finance

1 what kinds of organizations must consider disaster

1. What kinds of organizations must consider disaster preparedness? 2. What is the difference between mitigation and preparedness? 3. What are the steps involved in the preparedness cycle? 4. Name the ways that the Natio ...

1 what is the purpose of the accrual tranche could a cmo

1. What is the purpose of the accrual tranche? Could a CMO exist without a Z class? What would be the difference between the CMO with and without the accrual class? 2. Which tranches in a CMO issue are least subject to p ...

For the situation described in problem 2 above we expect

For the situation described in problem 2 above we expect elastic interaction loss of 6% and embedment loss of 4%. Compute the revised maximum and minimum preloads ? Sketch the revised, preloaded joint diagram ? Compute t ...

Consider a portfolio comprised of two securities m and n

Consider a portfolio comprised of two securities, M and N. The correlation of the returns on these securities is 0.25. And suppose that these securities have different standard deviations. Explain how different combinati ...

1 distinguish between concurrent and predictive validity do

1. Distinguish between concurrent and predictive validity. Do these terms refer to types of construct validity or criterion-related validity? 2. How can we tell whether a particular measure is biased against a particular ...

Strategywhat is an aggressive financing strategy what are

Strategy What is an aggressive financing strategy? What are components of aggressive finance strategies? What is the difference between the aggressive and conservative financing models? Under what circumstances would you ...

Determine which report format is bestfor each of the

Determine which report format is best. For each of the following scenarios, which report format would you choose and why? If you would use a primarily text-based report format, identify whether you would create a separat ...

Cost of debt the zephyr corporation is contemplating a new

(Cost of debt) The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new $1,000 par value bonds at a net price of $930. The coupon interest rate is 14 percent, ...

1 what is a standby commitment when and why is it used2

1. What is a standby commitment? When and why is it used? 2. What is a mini-perm or bullet loan? When and why is this type of loan used? 3. Third-party lenders sometimes provide gap financing for project developments. Wh ...

1 what is a restricted range and what effect does it have

1. What is a restricted range, and what effect does it have on correlation coefficients? How would you detect and correct a restricted range? 2. How do we know whether a particular score is an outlier?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen