Q8. Your company plans to borrow $13 million for 12 months, and...
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Accounting
Q8.
Your company plans to borrow $13 million for 12 months, and your banker gives you a stated rate of 20 percent Interest. Calculate the effective rate of Interest for the following types of loans. a. Simple 20 percent interest with a compensating balance of 12 percent. Note: Use a 360-day year. Input your answer as a percent rounded to 2 declmal places. b. Discounted interest (with no compensating balance). Note: Input your answer as percent rounded to 2 decimal places. c. An installment loan (12 payments). Note: Input your answer as percent rounded to 2 declmal places. d. Discounted Interest with a compensating balance of 6 percent. Note: Use a 360-day year. Input your answer as a percent rounded to 2 declmal places
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