Amish Bakery needs $210,000 today to fund a new project.The project will not produce any cash flows for two years and thus the firm agreed to a two-year,pure discount loan at 7.5 percent interest.How much will the firm owe on this loan at the time it must be repaid?
A) $228,060.00
B) $237,540.21
C) $240,860.00
D) $241,159.39
E) $242,681.25
Correct Answer:
Verified
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