Write a
brief essay that answers all the questions of the case or the weekly allowance.
List references and sources using the proper APA style. Include at least one
different text course book or guide additional source. Describe in detail and
present all the calculations used to arrive at solutions to the following
questions:

1.
Community Hospital has annual net revenues of $ 150 million for patient care.
Currently the payments received by the hospital are not deposited before the
first six days after billing service. The hospital is exploring a deal to
reduce the six days to one day and improve cash flow. If these funds released
by the availability of cash could invest at a rate of 8% per annual, much would
the annual savings? Suppose the bank fee is $ 2,000 per month.

2. St.
Luke’s Convalescent Center has a surplus of funds for $ 200,000 to be invested
in marketable securities. If the transaction costs of buying therefore, for
sale of the securities is $ 2,200 and the investment of these funds will be
held for three months, annual minimum performance must be obtained for the
investment makes economic sense?

3. Your
company is considering a bank loan for $ 1,000,000, under the following three
alternatives:
a) 10% percent of the loan is paid at the end of the year without compensating
balance
b) loans of 9% paid at year-end with a balance of compensation of 20%
c) 6% of the loan is discounted with a requirement of 20% as compensation
balance
Assume that you normally do not lead to any bank account balance of 20% that
meets this requirement of compensation. What is the annual interest rate of
each loan?

4. Trade
credit is a temporary source of important resources that are not translated
into a truly effective input, but delayed his departure. Sellers often offer
discounts for early payment. What is the formula for determining the effective
interest rate if the discount is not used?