7. Computing the cost of a discount interest loan a The financial managers at Wallace Corporation are arranging the financing for working capital requirements for the upcoming year. Wallace's local bank offers a discount interest loan at a quoted (simple) interest rate of 4.00%. With a discount interest loan, interest is payable up front, and the actual amount received is less than the face amount of the loan. Suppose Wallace applies for a $200,000 loan with a nine-month term. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (CAR) of this loan. Value Interest payment 8.00017760/b, 00015820 B2, 29, 32 24 ADD ID Annual percentage tate (APR) 3.04 372.3274.12 4,1484123.0912-31 Amount of cash received Effective annual rate (EAR) What is the nine month rate of the bank charges a $100 processing fee? 04.12 03.15% 03.0590 2.84% Grade It Now Save & Continue