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29. A company has an outstanding one-year bank loan of $500,000
at a stated interest rate of 8%. The company is required to maintain
a 20% compensating balance in its checking account. The company
would maintain a zero balance in this account if the requirement
did not exist. What is the effective interest rate of the loan?
30. Josey maintained a $10,000 balance in his savings account
throughout 2008, the first year of the account. The savings account
paid 2% interest compounded annually. For 2008, the inflation rate
was 3%. For 2008, what is Josey's real interest rate on the savings
account?
31. Which one of the following is interest earned on both an initial
principal and the unpaid accrued interest that accumulated on that
principal from prior periods?
32. Beta Company has arranged to borrow $10,000 for 180 days.
Beta will repay the principal amount plus $600 in interest at the
maturity of the note.Which one of the following is the annual
percentage rate (APR) of interest that Beta is paying on the loan?
33. Which one of the following is the annual rate of interest
applicable when not taking trade credit terms of "2/10, net 30?"
34. The following information is available on market interest rates:
What is the market rate of interest on a one-year U.S. Treasury bill?
35. Which one of the following U.S. GAAP approaches to
determining fair value converts future amounts to current amounts?
36. Which of the following U.S. GAAP levels of inputs for valuation
purposes is/are based on observable inputs?
37. Conceptually, which one of the following U.S. GAAP
approaches for determining value is most likely to provide the best
evidence of fair value?
38. Which of the following characteristics, if any, should be taken
into account in valuing a specific item?