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Help Save & Exit Submit C 6 Burt's Department Store needs $675,000 to take a cash discount of 150/15, net 70. A banker will loan
Help Save & Exit Submit C 6 Burt's Department Store needs $675,000 to take a cash discount of 150/15, net 70. A banker will loan the money for 55 days at an Interest cost of $16,600. a. What is the annual rate on the bank loan? ( 365 days in a year. Do not round Intermediate calculations. Round the fol answer to 2 decimal places) 12.5 points Annual rate book Pret b. How much would cost in percentage terms) Burt's did not take the cash discount and paid the bill in 70 days instead of 15 days (Use 365 days in a year. Do not round Intermediate calculations. Round the final answer to 2 decimal places Cost of not taking a cash discount c. Should Burt's borrow the money to take the discount? Relevances Yes No d. If the banker requires a 10 percent compensating balance, how much must Burt's borrow to end up with the $675,000? (Round the final answer to the nearest whole dollar) Amount to be borrowed S e-1. What would be the Interest rate in part of the interest charge for 55 days were $21,000? (Use 365 days in a year. Do not round Intermaterine Botha e-1. What would be the interest rate in part dif the interest charge for 55 days were $21000? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Annual rate % e-2. Should Burt's borrow with the 10 percent compensating balance? (There are no funds to count against the compensating balance requirement) No Yes
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