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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
According to Redpath and Greg Urban, what is the threshold amount for determing if a substantial basis adjusment is mandatory?
Answers (2)
Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food Network. She recently remodeled her kitchen and purchased new appliances.
Answers (1)
The unemployment rate of: a. women greatly exceeds that of men. b. whites is roughly equal to that of African Americans. c. managerial and professional workers exceeds that of construction and extraction workers. d.
Answers (1)
One year ago, you purchased a stock at a price of $38.22 a share. Today, you sold the stock and realized a total loss of 11.09 percent on your investment. Your capital gain was - $4.68 a share. What was your dividend yield?
Answers (1)
Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a (n) A. horizontal contractual notice. B. vendor-managed inventory alert. C.
Answers (1)
New Questions in Business
Your friends own a lawn care business. They own their own equipment and trailers to transport it. Eventually they buy out another local lawn care company and double their customers. This is an example of 1. ending an oligopoly2.
Answers (1)
Suppose you currently earn $30,000 a year. you are considering a job that will increase your lifetime earnings by $300,000 but that requires an mba. the job will mean also attending business school for two years at an annual cost of $25,000.
Answers (1)
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $154,000. The machine's useful life is estimated to be 5 years, or 370,000 units of product, with a $6,000 salvage value.
Answers (1)
The manger is responsible for training you about food safety in your job duties. These duties include preventing foodborne illness by?
Answers (1)
The use and importance of managerial accounting is growing in each of the following areas except for a. nanotechnology advancements. b. enterprise risk management. c. corporate sustainability reporting. d. quality accounting. e. lean accounting.
Answers (1)