Answered: Edison Mfg. needs to borrow $50,000 for…

Edison Mfg. needs to borrow $50,000 for six months. If the annual interest rate is 15%, what is the APY of a loan with interest paid in arrears and a 10% compensating balance? 17.36% 18.42%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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Question

100%

Help please and thanks!

Edison Mfg. needs to borrow $50,000 for six months. If the annual interest rate is 15%, what is the APY of a loan with interest paid in arrears and a 10% compensating balance?

17.36%

18.42%

RQ 22.4. Edison Mfg. needs to borrow $50,000 for six months. If the annual interest rate is 15%, what is the APY of a discount loan with a 10% compensating balance?

17.56%

19.01%

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