Question
A company will pay interest in the amount of $250,000 if $6,500,000 is borrowed from a line of credit. The company would be required to
A company will pay interest in the amount of $250,000 if $6,500,000 is borrowed from a line of credit. The company would be required to pay an up-front commitment fee of $7,000 and maintain a $260,000 compensating balance. What would be the effective annual interest rate on this lending arrangement?
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The Evolution Of Nordic Finance
Authors: Steffen Elkiær Andersen
2011th Edition
0230241557, 978-0230241558
