Business, 02.08.2021 21:50, xatziry1717
Summit Record Company is negotiating with two banks for a $104,000 loan. Fidelity Bank requires a compensating balance of 22 percent, discounts the loan, and wants to be paid back in four quarterly payments. Southwest Bank requires a compensating balance of 11 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. The stated rate for both banks is 10 percent. Compensating balances will be subtracted from the $104,000 in determining the available funds in part
a. 0-1. Calculate the effective interest rate for Fidelity Bank and Southwest Bank. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
Effective Rate of Interest
Fidelity Bank
Southwest Bank
a-2. Which loan should Summit accept?
Southwest Bank
Fidelity Bank
b. Recompute the effective cost of interest, assuming that Summit ordinarily maintains $22,880 at each bank in deposits that will serve as compensating balances. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
Effective Rate of Interest
Fidelity Bank
Southwest Bank
c. Does your choice of banks change if the assumption in part b is correct?
Yes
Nο
Answers: 2
Business, 22.06.2019 07:50, sis212
Connors academy reported inventory in the 2017 year-end balance sheet, using the fifo method, as $154,000. in 2018, the company decided to change its inventory method to lifo. if the company had used the lifo method in 2017, the company estimates that ending inventory would have been in the range $130,000-$135,000. what adjustment would connors make for this change in inventory method?
Answers: 1
Business, 22.06.2019 14:00, breana758
Bayside coatings company purchased waterproofing equipment on january 2, 20y4, for $190,000. the equipment was expected to have a useful life of four years and a residual value of $9,000. instructions: determine the amount of depreciation expense for the years ended december 31, 20y4, 20y5, 20y6, and 20y7, by (a) the straight-line method and (b) the double-declining-balance method. also determine the total depreciation expense for the four years by each method. depreciation expense year straight-line method double-declining-balance method 20y4 $ $ 20y5 20y6 20y7 total $
Answers: 3
Business, 22.06.2019 14:40, smithnakayla19
Increases in output and increases in the inflation rate have been linked to
Answers: 2
Summit Record Company is negotiating with two banks for a $104,000 loan. Fidelity Bank requires a co...
History, 16.07.2019 11:30
Social Studies, 16.07.2019 11:30
Social Studies, 16.07.2019 11:30