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bank loan? The annualized cost of the bank loan is b . ( Round to two decimal places. ) (Related to Checkpoint 18.2) (Estimating the
bank loan?
The annualized cost of the bank loan is
bRound to two decimal places.
(Related to Checkpoint 18.2) (Estimating the cost of bank credit) Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loam The loan will carry a rate of 14 percent per annum with interest paid in advance (discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 8 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow $100,000 for a period of 6 months, what is the annualized cost of the bank loan? The annualized cost of the bank loan is 00/0. (Round to two decimal places.)
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