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show calculations and formulas Ref 16. 6. Your firm needs to raise funds for inventory expansion. a.- What is the effective annual rate (EAR) on

show calculations and formulas
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Ref 16. 6. Your firm needs to raise funds for inventory expansion. a.- What is the effective annual rate (EAR) on a loan of $150,000 if it is discounted at a 12 percent stated annual rate (Annual Percentage Rate -APR-) and it matures in five months? b. How much must you borrow in order to obtain usable funds of $150,000 ? c. What is the effective annual rate if you borrow the funds computed in Part b

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