Neveready Flashlights Inc. needs $302,000 to take a cash discount of 2/19, net 71. A banker will loan the money for 52 days at an interest cost of $11,800. a. What is the effect…

Question

asked Aug 7, 2021 192k views

1 Answer

Yellow And Red · Answer 1 · 2021-08-10T20:08:44+0000

Answer:

The effective rate on the bank loan is 27%

Step-by-step explanation:

The effective rate of Interest

= ($11,800/$302,000)*(360Days/52days)

= 0.039*6.92

=27%