ABC needs $627,000 to take advantage of a special offer from their key supplier. The loan will allow them to reduce their accounts payable and begin taking trade discounts. They plan to repay the loan in one year out of their normal operating cash flows. The bank has offered a one-year discountloan at an annual percentage rate of 5.25%. Given this information, how many dollars of interest is ABC expected to pay for this arrangement?

Answer rating: 100% (QA)

Given Loan amount Principal P 627000 Annual Percentag... View the full answer