Atlas Tire Irons, Inc. is considering borrowing $5000 for a 90-day period - 3441

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Atlas Tire Irons, Inc. is considering borrowing $5000 for a 90-day period. The firm will repay the $5000 principle amount plus $150 in interest. What is the effective annual rate of interest? Use a 360-day year.

a. 7%

b. 12%

c. 15%

d. 25% 

Solution Description

Atlas Tire Irons, Inc. is considering borrowing $5000 for a