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A company borrows $2,000,000 from a bank for 92 days. The bank charges interest at a rate of 6.2%. At the stated rate of interest,
- A company borrows $2,000,000 from a bank for 92 days. The bank charges interest at a rate of 6.2%.
At the stated rate of interest, how much would the company have to repay the bank at maturity?
If the note is discounted (interest is taken out upfront), what would the effective rate of interest be, and how much would have to be repaid at maturity?
- A company borrows $150,000 from a bank for 200 days. The bank charges interest at a rate of 7.3%.
At the stated rate of interest, how much would the company have to repay the bank at maturity?
If the note is discounted (interest is taken out upfront), what would the effective rate of interest be, and how much would have to be repaid at maturity?
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