a. If a firm borrows $10,000,000 from a bank at 12% and pays an origination fee of 10%. What is the rate of interest if the firm borrows the full amount for the entire year?

b. If a firm borrows $10,000,000 from a bank at 12%, discounted in advance, what is the rate of interest if the firm borrows the full amount for the entire year?

Question

​a. If a firm borrows $10,000,000 from a bank at 12% and pays an origination fee of 10%. What is the rate of interest if the firm borrows the full amount for the entire year?
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b. If a firm borrows $10,000,000 from a bank at 12%, discounted in advance, what is the rate of interest if the firm borrows the full amount for the entire year?

Quizplus · Accepted Answer

The Answer of ​a. If a firm borrows $10,000,000 from a bank at 12% and pays an origination fee of 10%. What is the rate of interest if the firm borrows the full amount for the entire year?
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b. If a firm borrows $10,000,000 from a bank at 12%, discounted in advance, what is the rate of interest if the firm borrows the full amount for the entire year?

​A If a Firm Borrows $10,000,000 from a Bank at 12

A If a Firm Borrows $10,000,000 from a Bank at 12