Alana Olsen borrowed $5,000 for 90 days from First Bank. The bank discounted the note at 7

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Alana Olsen borrowed $5,000 for 90 days from First Bank. The bank discounted the note at 7 percent.
a. What proceeds did Olsen receive?
b. What is the effective rate to the nearest basis point?
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Entrepreneurial Finance

ISBN: 978-0133140514

6th edition

Authors: Philip J. Adelman; Alan M. Marks

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