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Austal Ship plans to borrow 2.69 million Australian dollars (A$) for three years. It obtains a floating rate loan from a bank at the interest
Austal Ship plans to borrow 2.69 million Australian dollars (A$) for three years. It obtains a floating rate loan from a bank at the interest rate equal to the LIBOR + 2.96 (%). Austal Ship also forecasts 3.88%, 4.20%, and 4.79% LIBOR in year1, year2, and year3, respectively. How much total interest Austal Ship needs to pay for A$2.69 millions in three years of the loan period?
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