Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

A & S company has taken a loan of D10,000,000 from Trust Standard Chartered Bank Gambia Ltd. at 15% interest. What is the cost of term loan if the tax rate is 5%?

Sagot :

Answer:

the cost of the term loan in the case when the tax rate is 5% is 14.25%

Explanation:

The computation of the cost of the term loan in the case when the tax rate is 5%

The cost of term loan = Interest rate ×(1 - Tax rate)

= 15% × (1 - 0.05)

= 14.25%

hence, the cost of the term loan in the case when the tax rate is 5% is 14.25%

The same is to be considered and relevant

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.