Question
(13.) The Needy Corporation borrowed $10,000 from Bank Ease. According to the terms of the loan, Needy must pay the bank $382 in interest every
(13.) The Needy Corporation borrowed $10,000 from Bank Ease. According to the terms of the loan, Needy must pay the bank $382 in interest every three months for the three-year life of the loan, with the principal to be repaid at the maturity of the loan. What effective annual rate (EAR) is Needy paying? (Round to one decimal place)
(14.) The Treadwater Bank wants to raise $1.49 million using a three-month commercial paper. The net proceeds to the bank will be $1,463,180. What is the effective annual rate (EAR) of this financing for Treadwater? (Round to two decimal places)
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