Randall Corporation plans to borrow $276,000 for one year at 19 percent from the Waco State Bank.
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Randall Corporation plans to borrow $276,000 for one year at 19 percent from the Waco State Bank. There is a 28 percent compensating balance requirement. Randall Corporation keeps minimum transaction balances of $9,000 in the normal course of business. This idle cash counts toward meeting the compensating balance requirement. What is the effective rate of interest?
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Effective rate of interest Interest Days in the year36...View the full answer
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Related Book For 
Foundations Of Financial Management
ISBN: 9781264097623
18th Edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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