AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an annual rate of 6.5 percent with discount interest and a compensating balance of 2 percent.
a. How much will AIE have to borrow?
b. What is the effective rate on this loan?
c. If AIE can convince the bank to remove the compensating balance requirement, what is the effective rate?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an annual rate of 6.5 percent with discount ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Suppose Spain produces only cars and trucks. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both trucks and cars.
Answers (1)
Danielle, one of your tax clients, has reached out regarding her itemized deductions. She pays on average $4,000 in property taxes on her personal residence per year and contributes $5,000 to her favorite Sec.
Answers (1)
David, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alexis, is willing to sell 1,500 shares of the same stock.
Answers (1)
Which is a natural property of nicotine?
Answers (1)
On April 1, Snell Company made a $50,000 sale giving the customer terms of 3/10, n/30. The receivable was collected from the customer on April 8.
Answers (1)
New Questions in Business
Potential real gdp = $200 billion natural rate of unemployment = 6 percent actual rate of unemployment = 12 percent refer to the accompanying data, which is for a specific year in a hypothetical economy for which okun's law is applicable.
Answers (1)
Assume that a $1,000 bond issued in 2015 pays $100 in interest each year. What is the current yield on the bond if it can be purchased for $1,200? Enter your answer in percent form and to one decimal place. For example, if your answer is 0.034 (3.
Answers (1)
Flex Co. just paid total dividends of $975,000 and reported additions to retained earnings of $2,925,000. The company has 675,000 shares of stock outstanding and a benchmark PE of 16.9 times. What stock price would you consider appropriate?
Answers (1)
Improving performance and striving for a better career is an example of ...
Answers (1)
When dvds and hamburgers were the same price, mavis consumed 3 hamburgers and 5 dvds, and mavis received 10 utils from the last hamburger and 15 utils from the last dvd consumed.
Answers (1)