Q1 A company plans to borrow RM3,000,000 for a year. The stated interest rate is 10 percent. Compute the effective interest rate under each of these assumptions. Each part stands alone. a) The...

Extracted text: Q1 A company plans to borrow RM3,000,000 for a year. The stated interest rate is 10 percent. Compute the effective interest rate under each of these assumptions. Each part stands alone. a) The interest is discounted. b) There is an 18 percent compensating balance requirement. c) It is a 12 – month instalment loan. d) Assume the interest is only RM75,000 and the loan is for 120 days.