, Question 1
The next three questions apply to the information provided below:
Triple Ltd has obtained a 180-day loan of R400 000 at an interest rate of 1.5% plus a prime rate of
16% payable at maturity. Assume a 365-day year.
The firm will pay approximately … on the 180-day loan.
1.
R13 325
2.
R13 685
3.
R34 521
4.
R70 000
Question 2
Given this information, the effective 180-day rate on this loan will approximately be …
1.
3.33%.
2.
3.42%.
3.
4.56%.
4.
8.63%
Question 3
If Triple Ltd decided to roll over the loan every 180 days throughout the year and under the same
interest conditions, the effective annual rate will approximately be …
1.
7.05%.
The next three questions apply to the information provided below:
Triple Ltd has obtained a 180-day loan of R400 000 at an interest rate of 1.5% plus a prime rate of
16% payable at maturity. Assume a 365-day year.
The firm will pay approximately … on the 180-day loan.
1.
R13 325
2.
R13 685
3.
R34 521
4.
R70 000
Question 2
Given this information, the effective 180-day rate on this loan will approximately be …
1.
3.33%.
2.
3.42%.
3.
4.56%.
4.
8.63%
Question 3
If Triple Ltd decided to roll over the loan every 180 days throughout the year and under the same
interest conditions, the effective annual rate will approximately be …
1.
7.05%.
