Question

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.

- Find loan amount
- Find interest.
- Find other cost/fees.
- Find compensating balance.
- Find m and period rate.
- Find Annual Percentage Rate, APR
- Find effective annual rate, EAR.

Answer #1

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to double your account balance given 5% annual interest rate, you
should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2, CPT
N=? --- the question mark here stands for your answer to the
question.
Question 6 – PV, Ordinary Annuity, Compounding [2 points]:
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