A firm borrows $ 1,000,000 for a year from a commercial bank. The terms of the loan are 5% annual interest plus a 5% originating fee paid when the loan is granted. A) What is the annual interest rate? B) How much does the firm borrow to be certain that it has $ 1,000,000 to use?

Answer rating: 100% (QA)

1 It was given that the annual interest rate was 5 The Effective an... View the full answer