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Problem 8 - 1 7 ( Algo ) Effective rate under different terms [ LO 8 - 2 ] Your company plans to borrow $

Problem 8-17(Algo) Effective rate under different terms [LO8-2]
Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 17 percent interest. Calculate the effective rate of interest for the following types of loans.
a. Simple 17 percent interest with a compensating balance of 8 perceht: Note: Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.
Effective rate of interest
b. Discounted interest (with no compensating balance). Note: Input your answer as percent rounded to 2 decimal places.
Effective rate of interest
An installment loan (12 payments)
Note: Input your answer as percent rounded to 2 decimal places.
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