1) Francis Construction Co. has an outstanding bank loan of $600,000 at an annual interest rate of 8%. The company is required to maintain a 20% compensating balance in its chequing account. What is the annual interest cost on the loan?

8.0%.

9.5%.

10.0%.

6.40%.

and also

2) The cost of forgoing the discount on trade credit of 4/10, net 90 is equal to:

18.25%.

19.01%.

20.52%.

12.13%.

and also

3) Mrs. Robinson borrows $5,000 for 90 days and pays $80 interest. What is her annual rate of interest?

1.6%.

6.49%.

12.98%.

6.40%.