ost of bank loan Data Back-Up Systems has obtained a $25,000, 90-day bank loan at an annu ayable at maturity. (Note: Assume a 365-day year.) How much interest (in dollars) will the firm pay on the 90-day loan? Find the 90-day rate on the loan. Annualize your result in part b to find the effective annual rate for this loan, assuming that it is r roughout the year under the same terms and circumstances. The amount of interest on the loan is $ 863.01. (Round to the nearest cent.) The effective 90-day rate is 3.45%. (Round to two decimal places.) The effective annual rate is %. (Round to two decimal places.)

ost of bank loan Data Back-Up Systems has obtained a $25,000, 90-day bank loan at an annu ayable at maturity. (Note: Assume a 365-day year.) How much interest (in dollars) will the firm pay on the 90-day loan? Find the 90-day rate on the loan. Annualize your result in part b to find the effective annual rate for this loan, assuming that it is r roughout the year under the same terms and circumstances. The amount of interest on the loan is $ 863.01. (Round to the nearest cent.) The effective 90-day rate is 3.45%. (Round to two decimal places.) The effective annual rate is %. (Round to two decimal places.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...

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