Question
Falcon Co. needs to borrow cash on January 1 to expand its operations. Option A is a five-month note at 7% annual interest. Option
Falcon Co. needs to borrow cash on January 1 to expand its operations. Option A is a five-month note at 7% annual interest. Option B is a three-month note at 9% annual interest. Both options will immediately provide the $1,460,000 of principal (cash) they require. Which note option will require the highest amount of total interest? You may round your amounts to the nearest dollar. Please show your work to receive credit and circle your final answer.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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