Question: During the next four months a company is considering approaching
During the next four months, a company is considering approaching banks to finance its increased level of working capital. The company expects to increase its working capital needs by $30,000 and hopes to obtain 55% financing from the bank. The bank manager said that it would cost them $700 in finance costs for the four-month period. Based on this information, calculate the company’s APR for the four-month loan.
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