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5. Your company plans to borrow $8 million for 12 months, and your banker gives you a stated rate of 12% interest. You would like
5. Your company plans to borrow $8 million for 12 months, and your banker gives you a stated rate of 12% interest. You would like to know the effective rate of interest for the following types of loans. (each part stands alone) a.) Simple 12% interest with a 10% compensating balance. b.) Discounted interest. c.) An installment loan (12 payments) d.) Discounted interest with a 5% compensating balance
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