The financial managers at Hansborough Corporation are arranging

the financing for working capital requirements for the upcoming

year. Hansborough$$s local bank offers a discount interest loan at a

quoted $($simple$)$ interest rate of $12\mathrm{.}00\%.$ With a discount interest

loan, interest is payable up front, and the actual amount received

is less than the face amount of the loan. Suppose Hansborough

applies for a $$200,000$ loan with a nine$-$month term.Calculate the interest payment, the amount of cash received, the

annual percentage rate $($APR$),$ and the effective annual rate $($EAR$)$

of this loan.$$ValueWhat is the nine$-$month rate if the bank charges a $$100$

processing fee?a$.)9\mathrm{.}05\%$b$.)8\mathrm{.}96\%$c$.)13\mathrm{.}19\%$d$.)9\mathrm{.}95\%$

The financial managers at Hansborough Corporation are arranging the financing for working capital requirements for the upcoming year.

Hansborough's local bank offers a discount interest loan at a quoted $($simple$)$ interest rate of $16\mathrm{.}00\%.$ With a discount interest loan, interest is payable up front, and the actual amount received is less than the face amount of the loan. Suppose Hansborough applies for a $$200,000$ loan with a ninemonth term.

Calculate the interest payment, the amount of cash received, the annual percentage rate $($APR$),$ and the effective annual rate $($EAR$)$ of this loan.

Value

Interest payment

$\backslash$table$[[$Amount of cash received,$$