Question: Cray Computing needs a 8-month loan for $300,000. Its bank quotes a simple interest rate of 5% on the loan. What is the annual percentage

Cray Computing needs a 8-month loan for $300,000. Its bank quotes a simple interest rate of 5% on the loan. What is the annual percentage rate (APR)? What is the effective annual rate (EAR)? What is the period rate if there is a compensating balance requirement of 10% of the loan amount? What is the annual percentage rate (APR) if there is a compensating balance requirement of 10% of the loan amount? What is the effective annual rate (EAR) if there is a compensating balance requirement of 10% of the loan amount

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