Atlas Tire Irons, Inc. is considering borrowing $5000 for a 90-day period. - 4456

Solution Posted by
UoPExpert

UoPExpert

Rating : (2)F
Solution Detail
Price: $1.30
  • From: ,
  • Posted on: Wed 28 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

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 borr