Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dr. ruth is going to borrow $5,000 to help write a

Dr. Ruth is going to borrow $5,000 to help write a book. The loan is...

90.2K

Verified Solution

Question

Accounting

Dr. Ruth is going to borrow $5,000 to help write a book. The loan is for one year and the money can be borrowed at either the prime rate or the LIBOR rate. Assume the prime rate is 11 percent and LIBOR 1.5 percent less. Also assume there will be a $45 transaction fee with LIBOR (this amount must be added to the interest cost with LIBOR). Which loan has the lower effective interest cost?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Retreating glaciers leave behind boulders of plucked rock callederraticstillitesstratified drifttill

Biology
Q

The classification of organisms has changed greatly over the past 230 years In the 1700s...

Biology
Q

Is the following statement true or false The expression of constitutively expressed genes example enzymes...

Biology
Q

SB5 b Which of the following statements explains the importance of fungi to producers They...

Biology
Q

What structure is labeled as 17 1 2 Floating rib Sternum False rib True rib...

Biology
Q

The radiation corresponding to 32 transition of hydro gen atom falls on a metal surface...

Physics
Q

Macy of New York sold LeeCo. of Chicago office equipment with a $7,100 list price....

Basic Math
Q

A population of values has a normal distribution with ?=152.1 and ?= 6.7. You intend...

Basic Math
Q

could...

Accounting
Q

Stockholders' Equity Common Stock, $1 par, 225,000 shares issued and outstanding 225,000225,000 ...

Accounting
Q

________ is a simple, yet effective, method for catching or preventing many types of employee...

Accounting
Q

Which of the following is NOT a form of payout (i.e. returning profits) to shareholders?...

Finance