19) Data Back-Up Systems has obtained a $10,000, 90-day bank
loan at an annual interest rate of 12%, payable at maturity. (Note:
Assume a 365-day year.)
a.How much interest (in dollars) will the firm pay on the 90-day
b.Find the 90-day rate on the loan
c.Annualize your result in part b to find the effective annual
rate for this loan, assuming that it is rolled over every 90 days
throughout the year under the same terms and circumstances.