Montross Inc. needs to raise $300,000 for a nine-month term. Montross's bank has offered to lend Montross the money at a 8.00% simple interest rate. Montross will receive the $300,000 upon approval of the loan and will pay back the principal and interest at maturity.

Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of this loan.


A.) Interest payment  ?
B.)Amount of cash received  ?
C.) Annual percentage rate (APR)  ?
D.)  Effective annual rate (EAR)?

Answer rating: 100% (QA)

A Interest payment Interest Principal Rate Time Interest 300000 0... View the full answer