Q2. Cool Inc. recently borrowed $300,000 from western Bank when the prime rate was 4%....
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Q2. Cool Inc. recently borrowed $300,000 from western Bank when the prime rate was 4%. The loan was for 90 days with interest to be paid at the end of the period with a rate fixed at 1.5% above the prime rate. What is the total interest paid on this loan and what is the effective annual rate? (Assume a 365-day year.)
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