Question: How to answer this question please? A drug store (pharmacy) chain wants to raise $500,000 using two-month commercial paper. The net proceeds to the chain

How to answer this question please?

A drug store (pharmacy) chain wants to raise $500,000 using two-month commercial paper. The net proceeds to the chain will be $497,500. What is the effective annual rate of this financing? Given what you have calculated, suggest a cheaper source of financing

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