Question
Cheap Money Bank offers your firm a discount interest loan at 7 percent for up to $35 million and, in addition, requires you to maintain
Cheap Money Bank offers your firm a discount interest loan at 7 percent for up to $35 million and, in addition, requires you to maintain a 4 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement?
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
