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Q: Calculate the effective cost of borrowing?
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A borrower is often confrented with a stated interest rate and an effective interest rate What is the difference and which one should a financial manager recognize as the true cost of borrowing?

A stated interest rate is the rate that is available when you are applying. An effective interest rate is the rate that has been applied to the loan. The true cost of borrowing is the effective interest rate.


How do you calculate effective cost of funds?

Effective cost of funding=[(1+foreign interest rate)(1+forward premium)]-1


The cost of borrowing money is called the?

The cost of borrowing money is called interest.


Cost of borrowing or price of borrowing?

Interest to be paid on the principle-or amount borrowed.


How do you calculate cost of funds?

Effective cost of funding=[(1+foreign interest rate)(1+forward premium)]-1


What are the non-pecuniary cost borrowing?

The meaning of non-pecuniary cost borrowing is the when a person borrows money for buying a product including time to shop for it.


What happens to the quantity demanded for credit if the cost of borrowing increases or decreases?

As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.


What does cost effective mean?

Cost-effective is the principal of going for the lowest cost.


How do you calculate cost of dedt?

Calculate cost of debt for what??????


What is the appropriate discount rate for valuing the lease?

the after-tax cost of secured borrowing.


What is the appropriate discount rate for valuing a financial lease?

the after-tax cost of secured borrowing.


How much does it cost to borrow a paintball gun and safety equipment for a day?

It depends on who you are borrowing it from.