Question
BRN Co. plans to borrow P10,000 from MLP Bank at a stated rate of 10% per annum. 1. What is the effective rate if it
BRN Co. plans to borrow P10,000 from MLP Bank at a stated rate of 10% per annum.
1. What is the effective rate if it has a compensating balance of P2,000, and the cash trapped in the compensating balance earns 2% a year, Brian maintains a minimum transaction balance of P500 in its account?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
9th edition
1-119-49356-3, 1119493633, 1119493560, 978-1119493631
