The treasurer of Brandon Blue Sox is seeking a $29,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $2.400 in the firm'schequing account. These funds could count toward meeting any compensating balance requirements.What is the annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate calculations. Round the finalanswer to 2 decimal places.)Annual rate of interest

Loan amount = $29,000Period = 180 daysStated interest rate = 12% p.a.Minimum balance =…

Answered: The treasurer of Brandon Blue Sox is…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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The treasurer of Brandon Blue Sox is seeking a $29,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $2,400 in the firm’s chequing account. These funds could count toward meeting any compensating balance requirements. What is the annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate
You go to the loan fund of the company where you work and find that they have an emergency fund whose regulations establish that the credits will be paid in monthly installments for 12 months, and that the installments 3,6,9 and 12 will be double the others. Likewise, the interest is 3 % per month. The amount that they will lend depends on the installment. a) If you are loaned $500,000, what will the normal payments be? b) If your regular payments are $10,000, what would be the value of the loan?
The treasurer of Brandon Blue Sox is seeking a $26,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $2,100 in the firm's chequing account. These funds could count toward meeting any compensating balance requirements. What is the annual rate of interest on this loan?
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