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Suncoast Boats Inc. estimates that because of seasonal nature of its business, it will borrow additional $2,000,000 for 2 months. Suncoast will borrow @ 15%

Suncoast Boats Inc. estimates that because of seasonal nature of its business, it will borrow additional $2,000,000 for 2 months. Suncoast will borrow @ 15% annum using a discount loan with a $8,000 processing fee.

  1. Find loan amount
  2. Find interest.
  3. Find other cost/fees.
  4. Find compensating balance.
  5. Find m and period rate.
  6. Find Annual Percentage Rate, APR
  7. Find effective annual rate, EAR.

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