An Apple Company would like to manufacture and market a new packaging. The company has sold an issue of commercial paper for R1 500 000 and maturity of 90 days to finance the new project. Assuming a 365-day year, what is the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is R1 650 000? 36.80%. 36.86%. 40.00%. 40.55%.
An Apple Company would like to manufacture and market a new packaging. The company has sold an issue of commercial paper for R1 500 000 and maturity of 90 days to finance the new project. Assuming a 365-day year, what is the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is R1 650 000? 36.80%. 36.86%. 40.00%. 40.55%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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QUESTION 7
An Apple Company would like to manufacture and market a new packaging. The company has sold an issue of commercial paper for R1 500 000 and maturity of 90 days to finance the new project. Assuming a 365-day year, what is the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is R1 650 000?
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36.80%.
-
36.86%.
-
40.00%.
-
40.55%.
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