Cost of Bank Loans places a The nominal annual rate on the loan was 1 1 5 What is the true effective rate b What would be the effective cost of the loan if the note required discount interest c What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments

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Cost of Bank Loans places. a . The nominal annual rate on the loan was 1 1 . 5 % . What is the true

Cost of Bank Loans places.

.

The nominal annual rate on the loan was

11.5 % .

What is the true effective rate?

.

What would be the effective cost of the loan if the note required discount interest?

.

What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments?

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