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Cost of bank loanData Back-Up Systems has obtained a $11,000, 90-day bank loan at an annual interest rate of 8%, payable at maturity. (Note: Assume

Cost of bank loanData Back-Up Systems has obtained a $11,000,

90-day bank loan at an annual interest rate of 8%, payable at maturity.

(Note: Assume a 365-day year.)a.How much interest (in dollars) will the firm pay on the 90-day

loan?b.Find the 90-day rate on the loan.c.Annualize your result in part b to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances.

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