The Stony River Textiles Company will borrow $50 million for 180 days from Merrimac Bank.The bank will charge Stony River 4.5 % on a discounted basis.What is the dollar amount of interest Stony 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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