Yoo Incorporated, has arranged a line of credit that allows it to borrow up to $63 million at any time. The interest rate is .639 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. If the company needs $39 million for 8 months, how much will it pay in interest? Multiple Choice $2,384,611.78 $1,646,757.87 $2,146,150.60
Yoo Incorporated, has arranged a line of credit that allows it to borrow up to $63 million at any time. The interest rate is .639 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. If the company needs $39 million for 8 months, how much will it pay in interest? Multiple Choice $2,384,611.78 $1,646,757.87 $2,146,150.60
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
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Transcribed Image Text:Yoo Incorporated, has arranged a line of credit that allows it to borrow up to $63 million at any time. The interest rate is .639 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed
in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. If the company needs $39 million for 8 months, how much will it pay in interest?
Multiple Choice
$2,384,611.78
$1,646,757.87
$2,146,150.60
$2,038,843.07
$1,254,672.66
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