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Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 14 percent interest. Calculate the effective rate...
Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 14 percent interest.Calculate the effective rate of interest for the following types of loans. (a) Simple 14 percent interest with a 10 percent compensating balance. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)(b) Discounted interest. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)(c) An installment loan (12 payments). (Round your answer to 2 decimal places. Omit the "%" sign in your response.)(d) Discounted interest with a 5 percent compensating balance. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Your company plans to borrow $5 million for 12 months, and your banker gives you astated rate of 14 percent interest.Calculate the effective rate of interest for the following types of loans.(a)...