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BADM-310 Business Finance SHORT TERM FINANCING QUESTION! (Help me pass the class!)?
rastafari_ganja_mon asked:
1. WERT Inc. needs short-term financing for the next 3 months. WERT has $600,000 average inventory level. ASDF Bank offers an inventory loan at 80 percent of the pledged inventory at 9 percent interest. There will be a $6,500 processing fee. In addition, there will be a 1.5% of inventory handling fee.
a. Find the loan amount
b. Find the compensating balance
c. Find the interest amount
d. Find the effective annual rate
1. WERT Inc. needs short-term financing for the next 3 months. WERT has $600,000 average inventory level. ASDF Bank offers an inventory loan at 80 percent of the pledged inventory at 9 percent interest. There will be a $6,500 processing fee. In addition, there will be a 1.5% of inventory handling fee.
a. Find the loan amount
b. Find the compensating balance
c. Find the interest amount
d. Find the effective annual rate
Posted in Mathematics | 
Tags: Asdf, Business Finance, Business Financing, Compensating Balance, Effective Annual Rate | 
1 Comment »
I need help on this math question?
Me asked:
You take out a short-term loan to furnish your
office. The interest rate is 4.25% compounded
once during the term of the loan, and you spend
$12,000. If the furniture vendor allows you to pay
in one lump sum at the end of two years, for how
much will you write the pay-off check?
You take out a short-term loan to furnish your
office. The interest rate is 4.25% compounded
once during the term of the loan, and you spend
$12,000. If the furniture vendor allows you to pay
in one lump sum at the end of two years, for how
much will you write the pay-off check?
Posted in Mathematics |
Tags: Furniture, Interest Rate, Lump Sum, Math Question, Short Term Loan |
1 Comment »