Accounting Question

Question 5 13 Points (a) Western Union has granted Aqua Ltd., a line of credit that allows it to borrow up to $82 million at any time. The interest rate is 0.37% per month. But Aqua Ltd. is required to have 9% of the borrowed amount deposited in a non-interest-bearing account. Assume the bank uses compound interest on its line of credit loans, what is the effective annual interest rate on this lending arrangement? (4 points) (b) Explain the 5 C's of Credit. (5 points) (c) Aqua Ltd. uses 2,780 machine parts per week and then reorders another 2,780. If the relevant carrying cost per machine part is $16.25, and the fixed order cost is $2,110, what is the EOQ for Aqua Led.? Explain your answer (4 points) Use the editor to format your