$30$

Harper Engine Company needs $$689,000$ to take a cash discount of $\frac{1\mathrm{.}50}{15},$ net $80.$ A banker will lend the money for $65$ days at an Interest cost of $$16,200.$

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.

o$2-40.$so $,$ os

Effective mate of intoreat

b$.$ How much would it cost $($in percentage terms$)$ if Harper did not take the cash discount but paid the bill in $80$ days instead of $15$ days?

Note: Use a $360-$day year. Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal pleces.

Cost of not taking a cash discount

c$.$ Should Harper borrow the money to take the discount?

No

Yes

d$.$ If another banker requires a $10$ percent compensating balance, how much must Harper borrow to end up with $$689,000?$ Note: Round your answer to $2$ decimal places.

Next

Amourit ta be bonowed

e$-1.$ What would be the effective interest rate in part $d$ if the interest charge for $65$ days were $$11,100?$ 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.$)$

$$ No

$$ Yes