DataBack-Up Systems has obtained a $34 comma 000

34,000, 30

30-day bank loan at an annual interest rate of 12

12%, payable at maturity.(Note:Assume a365-day year.)

a.How much interest(in dollars) will the firm pay on the

30-day loan?

b.Find the 30 day rate on the loan

30-day rate on the loan.

c.Annualize your result in part b to find the effective annual rate for thisloan, assuming that it is rolled over every 30

days throughout the year under the same terms and circumstances.