question archive Austal Ship plans to borrow 2
Austal Ship plans to borrow 2
Subject:AccountingPrice:2.86 Bought9
Austal Ship plans to borrow 2.89 million Australian dollars (A$) for three years. It obtains a floating rate loan from a bank at the interest rate equal to the LIBOR + 2.00 (%). Austal Ship also forecasts 3.76%, 4.43%, and 4.71% LIBOR in year1, year2, and year3, respectively. How much total interest Austal Ship needs to pay for A$2.89 millions in three years of the loan period? (enter the whole number without sign or symbol)
