A bank charges a 12% bank discount on short-term loans. A borrower needs GH¢2000 cash to be repaid with interest in 9 months. What size loan should he ask for, and how much interest will he pay?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
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A bank charges a 12% bank discount on short-term loans. A borrower needs GH¢2000
cash to be repaid with interest in 9 months. What size loan should he ask for, and how much interest will he pay?

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