3 Check my work Problem 8-25 Bank loan to take cash discount [LO8-1, 8-2] Harper Engine Company needs $687,000 to take a cash discount of 150/15, net 70 A banker will loan the money for 55 days at an interest cost of $20,800 a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places) ok Effective rate of interest 19.82 t nces b. How much would it cost (in percentage terms) if Harper did not take the cash discount but paid the bill in 70 days instead of 15 days? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places) 9.97 Cost of not taking a cash discount Activate Windows 3 of 10 Next > ga ENG 12:16 AM 1/31012) 3 10 points eBook Hint Print References Check my work No Yes d. If another banker requires a 10 percent compensating balance, how much must Harper borrow to end up with $687000? (Round your answer to 2 decimal places.) Amount to be borrowed e-1. What would be the effective interest rate in part d if the interest charge for 55 days were $12.600? (Use a 360-day year. Do not round intermediate calculations, Input your answer as a percent rounded to 2 decimal places) Effective rate of interest Next >