Firm A borrows $1 million from a commercial bank. The bank charges an annual rate of 10
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How much does the firm have to borrow to have $1 million? Confirm your answer and determine the effective rate of interest. (Assume the loan is outstanding for one year.)
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The origination fee 0031000000 30000 Thus the firm has the use ...View the full answer
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Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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