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question about finance need help to solve to clear the concept..... A Company Can barrow a discontel & 12,500 loan for 6 manths at 1.76%.

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question about finance need help to solve to clear the concept.....

A Company Can barrow a discontel \& 12,500 loan for 6 manths at 1.76%. What is the effedive rote of Use a 360 -day year calender. RI=PrincipolInterestDaysloanisoutstandingDaysinJear(360) b): If the company securas the loan at the rate calculated in a, the borrowed money would that yielfs an effective 8% return, Covering the Same Period. Dotermare whether this proposition results in net jain (or loss) for the fixw. c):- Alternafively, the firm can choose not fito boorow and deposit its avaidble funds in a savings accomit that Pays an effective 2.50% rate with the same maturity as thot of The loan. compared to your assessment of the Proposition outlimed in b, is the firm better off with the savings account

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