0 an 8- enf

Question

Question

business finance

Answer 1

Answer #1

Interest rate on loan, I = 8%

Compensatory balance, C = 15%

Loan amount, L = $ 1 mn

Funds actually disbursed to the customer = Loan - Compensatory balance = L - C x L = L x (1 - C) = $ 1 mn x (1 - 15%) = $ 0.85 mn

Interest liability = I x L = 8% x $ 1 mn = $ 0.08 mn

Hence, effective interest rate = interest liability / Funds actually disbursed to the customer = 0.08 / 0.85 = 9.41%

Answer 2

Similar Homework Help Questions

If P(E)9 and P(F)-.8, show that P(EnF)2.7. I inequality, namely, n general, prove Bonferroni s Use...

If P(E)9 and P(F)-.8, show that P(EnF)2.7. I inequality, namely, n general, prove Bonferroni s Use induction to generalized Bonferroni's inequality to n events and show the result.
(a) If E1, E2, En are sets, show rI b) Show that the empty set is a subset of every set c) Show t...

need some with these. thanks (a) If E1, E2, En are sets, show rI b) Show that the empty set is a subset of every set c) Show that EnE (d) Show that if E is any event of a sample space S, then E UE -S (e) Show that i E CF, ten F EU(En F). Also show the sets E and En F are disjoint. (1) Show for any two sets, E and F, we have F-(EnF)U(EnF). Also...
Solve the inequality for x: X-8 > 0 6x2–30x+36 (3, 8) or (-0, 8) O (2,...

Solve the inequality for x: X-8 > 0 6x2–30x+36 (3, 8) or (-0, 8) O (2, 8) or (8,00) O (2, 3) or (8, 00) O (1, 3) or (-8, 0)

linear algebra Explain why the matrix is not diagonalizable. A= 8 0 0 1 8 0...

linear algebra Explain why the matrix is not diagonalizable. A= 8 0 0 1 8 0 0 0 8 O A is not diagonalizable because it only has one distinct eigenvalue. O A is not diagonalizable because it only has two distinct eigenvalues. O A is not diagonalizable because it only has one linearly independent eigenvector. O A is not diagonalizable because it only has two linearly independent eigenvectors.
The t statistic for a test of ?0:?=8 H 0 : μ = 8 ??:?>8 H...

The t statistic for a test of ?0:?=8 H 0 : μ = 8 ??:?>8 H A : μ > 8 based on n = 17 observations has the value t = 1.1. (a) What are the degrees of freedom for this statistic? (b) Using the appropriate table in your formula packet, bound the p-value as closely as possible: < p-value
State the quadrant in which lies. sin(8) <0, cos(8) < 0 OII III OIV 8 If...

State the quadrant in which lies. sin(8) <0, cos(8) < 0 OII III OIV 8 If sin() and 8 is in the 1st quadrant, find the exact value for cos(8). 9 cos(8) - > Next Question State the quadrant in which lies. tan(8) > 0, csc(8) < 0 01 OII O III OIV

question 8 only & Find the eigenvalues of -8 A= 3 0 0 6 1 0...

question 8 only & Find the eigenvalues of -8 A= 3 0 0 6 1 0 2 9. Obtain the orthogonal decomposition of 10. Find the matrix of the the quadratic forms below. As- (a) 8x} + 7xį – 3x3 - 6x1x2 + 4x1.23 – 2x9:23 (b) 4x1x2 + 6x133 – 8x283
Insert O FUNCTIONS AND GRAPHS Union and intersection of intervals E and F are sets of...

Insert O FUNCTIONS AND GRAPHS Union and intersection of intervals E and F are sets of real numbers defined as follows. E = {z z<4) F={z | 2<5) Write En F and EU F using interval notation. If the set is empty, write Ø. ENF = 0 (00) [0,0] (0,0) [0,0) QUO EUF = 0 8 -00 х ? Page 2 of 4 Explanation Check Slide 1 of 1 Engl dtv as
(1 point) Let [-8 0 -1] A = 0 - 90 1-1 0 -8 Find an...

(1 point) Let [-8 0 -1] A = 0 - 90 1-1 0 -8 Find an orthogonal matrix P and a diagonal matrix D such that D = PTAP. Note: you will need both matrices correct before the system marks it as correct.

2) Identify the heterogeneous mixture: 8 8 88 0 0 0 o o 00 00 I...

2) Identify the heterogeneous mixture: 8 8 88 0 0 0 o o 00 00 I loooo @ 18 (d) (c) (e) (9)