Effective annual rate of interest that billings pays

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Reference no: EM13889418

Assume that Montana Mining, Inc. borrows $5,000,000 for 120 days. The total interest paid is $150,000. What is the APY, or Effective Annual Rate of interest that Billings pays?

a. 9.00%

b. 3.00%

c. 9.27%

d. 9.77%

Reference no: EM13889418

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