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WorksheetsShort Term Financing
Total questions: 10
Worksheet time: 15mins
What is the cost of giving up the cash discount of credit term 2/15 net 30
0.324
3.24
32.4
0.0324
What is the cost of giving up the cash discount of credit term 5/20 net 40
9.6053
0.0961
0.9605
0.9560
What is the cost of giving up the cash discount of credit term 4/15 net 35
0.7640
0.7406
0.6704
0.7604
What is the cost of giving up the cash discount of credit term 7/20 net 60
0.6868
6.8667
0.6886
0.8668
What is the cost of giving up the cash discount of credit term 8/30 net 50
0.1587
1.5870
0.5871
0.1578
What is the cost of giving up the cash discount of credit term 5/30 net 50
0.9605
0.6905
0.5906
0.5609
Sharina wishes to borrow RM20,000 for one year. The bank offers a simple interest loan at 14% per annum. Calculate the effective annual interest cost of the loan.
41%
14%
16%
20%
Moulud wishes to borrow RM50,000 for one year. The bank offers a simple interest loan at 10% per annum, and requires Moulud to maintain a compensating balance of 15% of the loan amount. If Moulud has no money available for the compensating balance, what is the cost to Moulud of taking up such a loan?
12.36%
14.56%
11.76%
10.55%
Anjung Industrise plans to sell RM200 million in 250 day maturity paper on which the expected discounted interest to be paid is 10% per annum. The firm also expects to incur RM200,000 in dealer placement fees and other expenses of issuing the paper. Calculate the cost of issuing commercial paper.
10.91%
19.10%
10.19%
11.19%
M&M Chocolates plans to sell RM150 million in 290 day maturity paper on which the expected discounted interest to be paid is 12% per annum. The firm also expects to incur RM90,000 other expenses of issuing the paper. Calculate the cost of issuing commercial paper.
11.23%
14.56%
13.38%
12.56%
