Austal Ship plans to borrow 2.87 million Australian dollars (A$) for three years. It obtains a floating rate loan from a bank at the interest rate equal to the LIBOR + 2.50 (%). Austal Ship also forecasts 3.88%, 4.40%, and 4.83% LIBOR in year1, year2, and year3, respectively. How much total interest Austal Ship needs to pay for A$2.87 millions in three years of the loan period? (enter the whole number without sign or symbol)

Answer rating: 100% (QA)

Heres a stepbystep calculation for the interest rate and total interest for each ... View the full answer