You are the accounting manager for Kool Ragz, Inc., a manufacturer of mens and w omens

Chapter 0, Problem 48

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You are the accounting manager for Kool Ragz, Inc., a manufacturer of mens and w omens clothing. The company needs to borrow $1,800,000 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 11% using ordinary interest. a. What is the amount of interest on this loan?b. After making a few shopping calls, you find that Southside National Bank will lend at 11% using exact interest. What is the amount of interest on this offer?c. So that you can keep your business, Rimrock Bank has offered a loan at 10.5% using ordinary interest. What is the amount of interest on this offer?d. (Challenge) If Southside National wants to beat Rimrocks last offer (part c) by charging $1,250 less interest, what rate, rounded to the nearest hundredths of a percent, must it quote using exact interest?

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