Question: please solve for the 2nd set. if you see any mistakes in the first set please let me know. Hansborough Inc. needs to raise $500,000

please solve for the 2nd set. if you see any mistakes

in the first set please let me know. Hansborough Inc. needs to

please solve for the 2nd set. if you see any mistakes in the first set please let me know.

Hansborough Inc. needs to raise $500,000 for a nine-month term. Hansborough's bank has offered to lend Hansborough the money at a 12.00% simple interest rate. Hansborough will receive the $500,000 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. Value Interest payment $45,000 Amount of cash received $500,000 Annual percentage rate (APR) 12.00% Effective annual rate (EAR) 12.18% Suppose the terms of the loan require that Hansborough maintain a compensating balance equal to 5% of the loan balance, and Hansborough will have to borrow the compensating balance from the bank. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of the loan considering the compensating balance requirement. Suppose the terms of the loan require that Hansborough maintain a compensating balance equal to 5% of the loan balance, and Hansborough will have to borrow the compensating balance from the bank. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of the loan considering the compensating balance requirement. Value Interest payment Amount of cash borrowed Annual percentage rate (APR) Effective annual rate (EAR)

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