What is the nominal annual financing cost of a 9-month, $200,000 discounted bank loan at a stated annual interest rate of 10%

To find the nominal annual financing cost of a 9-month discounted bank loan, we need to calculate the interest using the stated annual interest rate. Here's how you can do it:

Step 1: Convert the stated annual interest rate to a nominal monthly interest rate.
To convert the stated annual interest rate (10%) to a nominal monthly interest rate, divide it by 12 (the number of months in a year).
Nominal Monthly Interest Rate = (Stated Annual Interest Rate) / 12
Nominal Monthly Interest Rate = 10% / 12 = 0.8333%

Step 2: Calculate the interest for the 9-month loan.
Multiply the nominal monthly interest rate by the loan amount, and then multiply it by the number of months (9) to get the total interest.
Interest = (Loan Amount) x (Nominal Monthly Interest Rate) x (Number of Months)
Interest = $200,000 x 0.8333% x 9

Calculating this, we find:
Interest = $1499.97

Therefore, the nominal annual financing cost of a 9-month, $200,000 discounted bank loan at a stated annual interest rate of 10% is approximately $1,499.97.