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Harper Engine Company needs $622,000 to take a cash discount of 2.50/15, net 80. A banker will loan the money for 65 days at an

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Harper Engine Company needs $622,000 to take a cash discount of 2.50/15, net 80. A banker will loan the money for 65 days at an interest cost of $14,400. 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.) Effective rate of interest % b. How much would it cost (in percentage terms) if Harper did not take the cash discount but paid the bill in 80 days instead of 15 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 Harper borrow the money to take the discount? Advanced Problems Served Help Save & Exit Submit c. Should Harper borrow the money to take the discount? Yes No 58:08 d. If another banker requires a 10 percent compensating balance, how much must Harper borrow to end up with $622,000? (Round your answer to 2 decimal places.) Amount to be borrowed ces e-1. What would be the effective interest rate in part d if the interest charge for 65 days were $17,300? (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 % Amount to be borrowed GEXIE Submit 1 e-1. What would be the effective interest rate in part dif the interest charge for 65 days were $17,300? (Use a 360- day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 57,53 Effective rate of interest % e-2. Should Harper borrow with the 10 percent compensating balance requirement? (There are no funds to count against the compensating balance requirement.) O No Yes

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