You just purchased an automobile for $19,450 and must decide how to pay for it. Your local bank has granted you a five-year loan. Annual payments on the loan will be made at the end of each year and the amount of the loan payments, which include principal and interest, is $5,000 per year. What is the interest rate that is being charged on the loan?
$19,450 / $5,000 = 3.890 table factor
Using the PV of an Annuity table (Table 9-4 in the text), for 5 periods, this factor indicates that you are being charged 9% interest.
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The accounts payable clerk is responsible for updating the AP Control accounts to reflect each vendor liability
Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)
Georgia, Inc. has collected the following data on one of its products. The direct materials price variance is: Direct materials standard (4 lbs. @ $1/lb.)$4per finished unitTotal direct materials cost variance-unfavorable$13,750 Actual direct materials used 150,000lbs.Actual finished units produced 30,000units
A. $16,250 favorable. B. $13,750 unfavorable. C. $16,250 unfavorable. D. $33,000 favorable. E. $30,000 unfavorable.
Cripple Creek Distilleries Inc is an all equity company with 20M shares outstanding. It's stock last closed at $20. Cripple Creek has too much cash. The CEO, Levon Helm, wants to distribute the excess cash with an open market stock repurchase
He is contemplating buying back $5M worth of shares at a price of $20. What will the stock price be after completion of the repurchase? A) $19.00 B) $19.25 C) $19.50 D) $19.75 E) $20.00