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All results must be numeric and rounded to the nearest hundredth Question : A company needs to increase its working capital to 20701 riyals, the

All results must be numeric and rounded to the nearest hundredth Question : A company needs to increase its working capital to 20701 riyals, the Chief Financial Officer (CFO) decide to issue a commercial paper at a discount interest rate of 6 %. Note that the sale of this papers costing the company SR 2,000 / 6 months. 1- Find the Face Value of Commercial Papers to collect 20701 riyals. FV1 = ? 2- Find the effective interest rate of this type of financing. EIR1= ?

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