Q1- What is the annual interest rate, if a company seeks to avail a 1.5/5, net 45 policy?
Q2-The Kwality Layari Management (KLM) Company has stable daily sales of about $ 10,000 and uses a
standard net 15, EOM policy, calculate accounts receivable.
Q3-The Banque de Fraud, Inc. has awarded a $500 million revolving credit at 18% annual stated interest
rate for 1 month to the Masoom & Sada Company; borrowing for the month was $200 million by the
Masoom & Sada Company; Banque de Fraud requires 9% (annual rate) compensating balance on
borrowed funds; and a nominal 3% (annual) commitment fee on unavailed credit. What is the cost of
borrowing for Sada & Masoom Company for the month it used revolving credit?
