Question
A firm borrows $194,000 from a bank for 9 months but has to maintain a compensating balance of $18,000 with the bank. The annual interest
A firm borrows $194,000 from a bank for 9 months but has to maintain a compensating balance of $18,000 with the bank. The annual interest rate for the loan is 13.70% (APR). What is the effective annual interest rate on the loan?
pls do not use excel
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
