13. Francis Company's bank require s a compensating balance of 20% on a P100,000 loan. If the stated interest of the loan is 7% , what is the effective cost of the loan?
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13. Francis Company's bank require s a compensating balance of 20% on a P100,000 loan. If the stated interest of the loan is 7% , what is the effective cost of the loan?
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- Hagar Company's bank requires a compensating balance of 10% on a $100,000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the simple annual effective cost of the bank loan?In order to borrow $100,000 for a 5% loan on a discount loan basis with a 5% compensating balance; the firm will actually have to borrow?
- A bank makes a loan of $1,000,000 at a rate of 6% p.a. It also requires a compensating balance of 5%. What is the effective cost to the borrower?12. A bank offers a 272- day discounted loan at a simple discount rate of 12%. (a) How much money would a borrower receive if she asked for a $5,000 loan? (b) What size of the loan should the borrower ask for in order to actually receive $5,000? (c) What is the equivalent simple interest that is being charged on the loan?Problem E: Effective cost of Short‐term Loan:ABC will be acquiring a P4,000,000 loan from XYZ Bank. 13. The detail are 6‐month term, 3% interest, P40,000 bank chargeand P50,000 compensating balance.Required:13. How much is the compound effective annual interest?
- National Company has a P25,0000 line of credit at a 9% interest rate. The loan agreement requires a 3% compensating balance, which is based on the total amount borrowed, and which will be held in an interest-free account. What is the effective interest rate if the firm borrows P160,000 on the line of credit for one year? 8.67% 9.03% 8.78% 9.28%3. Assuming that you obtain a bank loan for P500,000 with an annual interest of 12% of the principal. Compute for the present value under the following independent scenario: a. Effective rate is 10% b. Effective rate is 8% c. Effective rate is 12%2. Assuming that you obtain a bank loan for 500,000 with an annual interest payment of 10% of the principal. Compute for the present value under the following independent scenarios: a. Effective rate is 10% b. Effective rate is 8% c. Effective rate is 12%
- ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the simple annual effective rate of the bank loan?A company borrows $100,000 with interest at j₁2 = 9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. The outstanding balance immediately after the th th 88 payment is $796.44. What is the value of the 89" and final payment? O A. $790.51 B. $796.44 C. $802.41 D. $808.43A BANK CHARGES 15% SIMPLE INTEREST ON A P500.00 LOAN. HOW MUCH WILL BE REPAID IF THE LOAN IS PAID BACK IN ONE LUMP SUM (FUTURE AMOUNT) AFTER THREE YEARS? O a. P572.00 O b. P752.00 O c. P725.00 O d. P275.00