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Fracuce. Chapter 14 Managing Short-Term Financing (Liabilities) eBook PanAir Reservations (PAR) borrowed $270,000 for 72 days from its bank. The interest rate on the loan
Fracuce. Chapter 14 Managing Short-Term Financing (Liabilities) eBook PanAir Reservations (PAR) borrowed $270,000 for 72 days from its bank. The interest rate on the loan is 12 percent. Assume there are 360 days in a year. a. Calculate the APR and rEAR assuming the loan is a simple interest loan with no compensating balance requirement. Do not round intermediate calculations. Round your answers to two decimal places. APR: % X TEAR: b. Calculate the APR and rEAR assuming the loan is a simple interest loan with a 25 percent compensating balance requirement, and PAR currently holds no funds at the lending bank. Do not round intermediate calculations. Round your answers to two decimal places. APR: % TEAR: % c. How much would PAR have to borrow if it needed $270,000 to pay bills and the loan required a 25 percent compensating balance? Round your answer to the neares dollar
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