Data back-up systems has obtained a 10000 90-day bank loan, Ask an Expert

Finance

Data back-up systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 15% , payable at maturity. (Note: Assume a 365-day year)

A. How much interest in dollars will the firm pay on the 90-day loan?

B. Find the 90-day rate on the loan

C. Annualize your result in part B to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91671372

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