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Please Show All Work for A and B. Answers must be legible clear writing or typed. A company borrows $150,000 from a bank for 200
Please Show All Work for A and B. Answers must be legible clear writing or typed.
A company borrows $150,000 from a bank for 200 days. The bank charges interest at a rate of 7.3%.
A: At the stated rate of interest, how much would the company have to repay the bank at maturity?
B: If the note is discounted (interest is taken out upfront), what would the effective rate of interest be, and how much would have to be repaid at maturity?
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