Question: Cray Computing needs a 5 - month loan for $ 3 0 0 , 0 0 0 . Its bank quotes a simple interest rate

Cray Computing needs a 5-month loan for $300,000. Its bank quotes a simple interest rate of 15% on the loan.
What is the annual percentage rate (APR)?
What is the period rate if there is a compensating balance requirement of 20% of the loan amount?
What is the annual percentage rate (APR) if there is a compensating balance requirement of 20% of the loan amount?
What is the effective annual rate (EAR) if there is a compensating balance requirement of 20% of the loan amount?

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