Check my work 9 Joints eBook Problem 8-24 Bank loan to take cash discount [LO8-1, 8-2] Neveready Flashlights Inc. needs $374,000 to take a cash discount of 2/19, net 73. A banker will loan the money for 54 days at an interest cost of $11,300. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Hint Effective rate of interest Print References % b. How much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 73 days instead of 19 days? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of not taking a cash discount % c. Should the firm borrow the money to take the discount? No Yes 9 Yes Check my work oints eBook d. If the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $374,000? Amount to be borrowed Hint Print References e-1. What would be the effective interest rate in part d if the interest charge for 54 days were $11,700? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest e-2. Should the firm borrow with the 20 percent compensating balance requirement? (The firm has no funds to count against the compensating balance requirement.) Yes No