Question
A firm engaged a one-year, monthly pay, $100,000 line of credit at 9 percent plus a 0.25 percent commitment fee on the unused portion of
A firm engaged a one-year, monthly pay, $100,000 line of credit at 9 percent plus a 0.25 percent commitment fee on the unused portion of the line. The firm used 75 percent of the line for the first half year and reduced the loan amount to 60 percent for the rest of the year. What is the effective annual rate of the loan?
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Multinational Business Finance
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
15th Global Edition
129227008X, 9781292270081
