Question
Connecticut Advanced Technologies ( CAT) is planning to get a 30-day $150,000 simple interest loan from its bank. The quoted interest rate on the loan
Connecticut Advanced Technologies ( CAT) is planning to get a 30-day $150,000 simple interest loan from its bank. The quoted interest rate on the loan is 10 percent. Calculate the APR and r(EAR) assuming the loan (a) has no compensating balance requirement and (b) has a 20 percent compensating balance requirement, and CAT currently holds no funds at the lending bank.
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
