Harper Engine Company needs $623,000 to take a cash discount of 2.50/10, net 85. A banker...

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Harper Engine Company needs $623,000 to take a cash discount of 2.50/10, net 85. A banker will lend the money for 75 days at an interest cost of $18,300. a. What is the effective rate on the bank loan? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Effective rate of interest % b. How much would it cost (in percentage terms) if Harper did not take the cash discount but paid the bill in 85 days instead of 10 days? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Cost of not taking a cash discount c. Should Harper borrow the money to take the discount? d. If another banker requires a 10 percent compensating balance, how much must Harper borrow to end up with $623,000? Note: Round your answer to 2 decimal places. Amount to be borrowed e-1. What would be the effective interest rate in part d if the interest charge for 75 days were $16,300? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Effective rate of interest % e-2. Should Harper borrow with the 10 percent compensating balance requirement? (There are no funds to count against the compensating balance requirement.) O No Yes Harper Engine Company needs $623,000 to take a cash discount of 2.50/10, net 85. A banker will lend the money for 75 days at an interest cost of $18,300. a. What is the effective rate on the bank loan? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Effective rate of interest % b. How much would it cost (in percentage terms) if Harper did not take the cash discount but paid the bill in 85 days instead of 10 days? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Cost of not taking a cash discount c. Should Harper borrow the money to take the discount? d. If another banker requires a 10 percent compensating balance, how much must Harper borrow to end up with $623,000? Note: Round your answer to 2 decimal places. Amount to be borrowed e-1. What would be the effective interest rate in part d if the interest charge for 75 days were $16,300? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Effective rate of interest % e-2. Should Harper borrow with the 10 percent compensating balance requirement? (There are no funds to count against the compensating balance requirement.) O No Yes