Question
Discount Superette borrowed R50 000 under a line of credit agreement. The interest rate is 11,5%. Discount Superette is required to maintain a compensating balance
Discount Superette borrowed R50 000 under a line of credit agreement. The interest rate is 11,5%. Discount Superette is required to maintain a compensating balance of 8% of the amount borrowed. What is the effective interest rate on the funds that Discount Superette borrowed?
A. 10,58%
B. 8,70%
C. 12,50%
D. 12,99%
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The Handbook Of Traditional And Alternative Investment Vehicles Investment Characteristics And Strategies
Authors: Mark J. P. Anson, Frank J. Fabozzi, Frank J. Jones
1st Edition
0470609737, 978-0470609736
