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What is the ear of firm three-month loan

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Company A takes a $750000 loan at a 8% APR rate with quarterly compounding. If the company takes 10% and puts it in an interest-bearing account. The bank that serve the firm pays 1% APR with quarterly compounding. What is the EAR of firm three-month loan? What will be the effective payment?

Reference no: EM132724259

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