ABC would need cash of P5,000,000. Several banks offered different loan conditions. One of the loans has
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Question:
ABC would need cash of P5,000,000. Several banks offered different loan conditions. One of the loans has a term of 6 months, interest of 5%, and compensating balance of P50,000
Required:
How much should the face value of the loan be?
How much is the simple effective annual interest?
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