An annual loan has a discount interest rate of 12.25%. You need $650,000 in funding to start a project.

1. What will the principal on the loan have to be?

Select one:

a. 556,333.43

b. 570,375.00

c. 650,000.00

d. 700,000.00

e. 740,740.74

f. 780,342.32

g. 820,143.87

2. The EAR (effective annual rate) of the loan is:

Select one:

a. .1225

b. .1295

c. .1327

d. .1396

e. .1441

f. .1628

g. .2618