What is the annual percentage interest rate for the loan

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Reference no: EM132016125

1. Pelican Corporation receives a ten-month $200,000 discount interest loan with a 14 percent quoted (simple) interest rate. What is the annual percentage interest rate for the loan? (Round your answer to two decimal places.)?

a. ?15.54%

b. ?14.96%

c. ?14.75%

d. ?16.08%

e. ?15.85%

2. Gale Corporation recently issued 270-day commercial paper with a face value of $100,000 and a simple interest rate of 11 percent per annum. Assuming there are 360 days in a year, what is the commercial paper's annual percentage rate (APR)? (Round your answer to two decimal places.)?

a. ?11.72%

b. ?12.25%

c. ?12.51%

d. ?11.99%

e. ?13.02%

Reference no: EM132016125

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