Question
A company will pay interest in the amount of $275,000 if $6,000,000 is borrowed from a line of credit. If the company would be required
A company will pay interest in the amount of $275,000 if $6,000,000 is borrowed from a line of credit. If the company would be required to maintain a $200,000 compensating balance and pay an up-front commitment fee of $5,000, what would be the effective annual interest rate on the lending arrangement?
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
