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You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's...

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Accounting

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You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing. The company needs to borrow $1,700,000 for 90 days in order to purchase a large quantity of material at "closeout" prices. The interest rate for such loans at your bank, Rimrock Bank, is 13% using ordinary interest. (a) What is the amount (in $) of interest on this loan? $ (b) After making a few "shopping" calls, you find that Southside National Bank will lend at 13% using exact Interest. What is the amount (in $) of interest on this offer? (Round your answer to two decimal places.) (c) So that it can keep your business, Rimrock Bank has offered a loan at 12.5% using ordinary interest. What is the amount (in $) of interest on this offer? $ (d) (Challenge) If Southside National wants to compete with Rimrock's last offer (parte) by charging $1,125 less Interest, what rate (as a %), rounded to the nearest hundredths of a percent, must it quote using exact Interest? %

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