2. Weathers Catering Supply, Inc. needs to borrow $150,000 for 6 months. Standard Bank has offered to lend the funds at

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

2. Weathers Catering Supply, Inc. needs to borrow $150,000 for 6 months. Standard Bank has offered to lend the funds at

Post by answerhappygod »

2 Weathers Catering Supply Inc Needs To Borrow 150 000 For 6 Months Standard Bank Has Offered To Lend The Funds At 1
2 Weathers Catering Supply Inc Needs To Borrow 150 000 For 6 Months Standard Bank Has Offered To Lend The Funds At 1 (26.23 KiB) Viewed 21 times
2. Weathers Catering Supply, Inc. needs to borrow $150,000 for 6 months. Standard Bank has offered to lend the funds at a 9% annual rate subject to a 10% compensating balance. IDLC Finance Co. has offered to lend the funds at a 9% annual rate with discount-loan terms. The principal of both loans would be payable at maturity as a single sum. a. Calculate the effective annual rate of interest on each loan. b. What could Weathers do that would reduce the effective annual rate on the Standard Bank loan?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”