Question
Decatur Marina has a line of credit with a local bank that permits it to borrow up to $1.3 million at any time. The interest
Decatur Marina has a line of credit with a local bank that permits it to borrow up to $1.3 million at any time. The interest rate is 0.60 percent per month. The bank charges compound interest and also requires that 5 percent of the amount borrowed be deposited into a non-interest-bearing account. What is the effective annual interest rate on this loan?
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Financial Management In The Sport Industry
Authors: Matthew T. Brown, Daniel A. Rascher, Mark S. Nagel, Chad D. McEvoy
3rd Edition
0367321211, 978-0367321215
