Purchase Solution

Data Back-Up Systems: interest calculations for 90 day loan

Not what you're looking for?

Ask Custom Question

Data Back-Up Systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 15%, payable at maturity. Assume a 365-day year.

1. How much interest (in dollars) will the firm pay on the 90-day loan?
2. Find the effective 90-day rate on the loan.
3. Annualize your result in part b to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances.

Purchase this Solution

Solution Summary

The solution determines interest calculations for a 90 day loan.

Solution Preview

1. Interest Paid = Loan Amount*Interest Rate*Number of ...

Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Introduction to Finance

This quiz test introductory finance topics.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Motivation

This tests some key elements of major motivation theories.