QUESTION 7 An Apple Company would like to manufacture and market a new packaging. The company has sold an issue of commercial paper for R XXXXXXXXXXand maturity of 90 days to finance the new project....

QUESTION 7

An Apple Company would like to manufacture and market a new packaging. The company has sold an issue of commercial paper for R1 500 000 and maturity of 90 days to finance the new project. Assuming a 365-day year, what is the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is R1 650 000?

1. 
   

   36.80%.

   
   


2. 
   

   36.86%.

   
   


3. 
   

   40.00%.

   
   


4. 
   

   40.55%.