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Data back-up systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 15% , payable at maturity. (Note: Assume a 365-day year)
A. How much interest in dollars will the firm pay on the 90-day loan?
B. Find the 90-day rate on the loan
C. Annualize your result in part B to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances.
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