ABC needs $719,000 to take advantage of a special offer from their key supplier. The loan...
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ABC needs $719,000 to take advantage of a special offer fromtheir key supplier. The loan will allow them to reduce theiraccounts payable and begin taking trade discounts. They plan torepay the loan in one year out of their normal operating cashflows. The bank has offered a one-year discount loan at an annualpercentage rate of 5.25%. Given this information, how many dollarsof interest is ABC expected to pay for this arrangement?
ABC needs $719,000 to take advantage of a special offer fromtheir key supplier. The loan will allow them to reduce theiraccounts payable and begin taking trade discounts. They plan torepay the loan in one year out of their normal operating cashflows. The bank has offered a one-year discount loan at an annualpercentage rate of 5.25%. Given this information, how many dollarsof interest is ABC expected to pay for this arrangement?
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