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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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
