Company A takes a $500000 loan at a 12% APR rate with quarterly compounding. If the company takes 10% and puts it in an interest-bearing account. The bank that serve the firm pays 1% APR with quarterly compounding. What is the EAR of the firm three-month loan? What will be the effective payment?

Answer rating: 100% (QA)

loan taken 500000 loan value after 3 months 500000 1 124 5150... View the full answer