Maximus, Inc. is planning to borrow $2 million for 9 months at a discounted interest rate of 4.5%. What is the annual percentage rate on the loan?
What will be an ideal response?
Answer:
Interest = $2,000,000 × .045 × 9/12 = $67,500
Rate = 67,500/(2,000,000 - 67,500) × 12/9 = 4.66%
Business
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