Question: 4. Cray Computing needs a 10-month loan for $300,000. Its bank quotes a simple interest rate of 8% on the loan. a. What is the

4. Cray Computing needs a 10-month loan for $300,000. Its bank quotes a simple interest rate of 8% on the loan.

a. What is the annual percentage rate (APR)?

b. What is the effective annual rate (EAR)?

c. What is the period rate if there is a compensating balance requirement of 20% of the loan amount?

d. What is the annual percentage rate (APR) if there is a compensating balance requirement of 20% of the loan amount?

e. What is the effective annual rate (EAR) if there is a compensating balance requirement of 20% of the loan amount?

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