Come and Go Bank offers your firm an 8 percent discount interest loan for up to $20
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Come and Go Bank offers your firm an 8 percent discount interest loan for up to $20 million, and in addition requires you to maintain a 3 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement?
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You will pay interest of Interest 2000000008 1600000 Additionally the compensating balance on t...View the full answer
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Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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