Pennsylvania Air Transportation (PAT) borrowed $80,000 for 60 days from its bank. The stated interest rate on

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Pennsylvania Air Transportation (PAT) borrowed

$80,000 for 60 days from its bank. The

stated interest rate on the loan is 12 percent.

Calculate the APR and rEAR assuming the loan is

a simple interest loan with (a) no compensating

balance requirement and (b) a 25 percent

compensating balance requirement, and CAT

currently holds no funds at the lending bank.

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Cfin4 Plus Coursemate Printed Access Card 2014

ISBN: 9781285434544

1st Student Edition

Authors: Scott Besley, Eugene F. Brigham

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Question Posted: Jun 10, 2024 02:07 AM

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Pennsylvania Air Transportation (PAT) borrowed $80,000 for 60 days from its bank. The stated interest rate on

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Cfin4 Plus Coursemate Printed Access Card 2014

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