Paymaster enterprises has arranged to finance its seasonal


Paymaster Enterprises has arranged to finance its seasonal? working-capital needs with a? short-term bank loan. The loan will carry a rate of 14 percent per annum with interest paid in advance? (discounted). In? addition, Paymaster must maintain a minimum demand deposit with the bank of 7 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ?$100,000 for a period of 6 ?months, what is the annualized cost of the bank? loan? ____% Round two decimal places

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Financial Management: Paymaster enterprises has arranged to finance its seasonal
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