If you borrow $2 million for 7.5 months, calculate your annual effective rate of interest under each of the following independent terms:
(a) $112,500 interest payable at the end of the loan period
(b) $112,500 interest payable at the beginning of the loan period ( discounted loan)
(c) 7% interest with a 10% compensating balance.
(d) 7% interest with a $10,000 lender’s fee, both payable at the end of the loan period
(e) 7% interest with a compensating balance of $100,000
(f) Discounted interest at a rate of 8%