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Question 3: A company needs to increase its working capital to 16327 riyals, the Chief Financial Officer (CFO) decides to Get a 1-year short-term loan

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Question 3: A company needs to increase its working capital to 16327 riyals, the Chief Financial Officer (CFO) decides to Get a 1-year short-term loan from the bank at an interest rate of 8%, note that is required to keep 20 % as a compensating balance. 1- Find the Face Value of this loan to collect 16327 riyals. FV2 = ? (for example 52456.76) 2- Find the effective interest rate of this type of financing. EIR2 = ? (for example 11.56)

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