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The Stoney River Textiles Company Will Borrow $50 Million for 180

Question 85

Multiple Choice

The Stoney River Textiles Company will borrow $50 million for 180 days from Merrimac Bank.The bank will charge Stoney River 4.5 % on a discounted basis.What is the dollar amount of interest Stoney River will need to pay? Assume a 360 day year.


A) $1,125,000
B) $1,099,688
C) $2,250,000
D) 41,074,375

Correct Answer:

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