Question
A company has a limit of NOK 1,000,000 on its overdraft facility. Interest is charged to the overdraft account every quarter. They pay 6% interest
A company has a limit of NOK 1,000,000 on its overdraft facility. Interest is charged to the overdraft account every quarter. They pay 6% interest p.a. and 0.15% commission each quarter. What will be the effective interest rate per year if the average deduction is 70%? Enter the percentage answer with two decimals.
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To calculate the effective interest rate per year we need to take into account both the nominal inte...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290
