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For this question, assume that the amount that you have to actually borrow for Mountain Sports, your ski and mountain bike rental business mentioned in

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For this question, assume that the amount that you have to actually borrow for Mountain Sports, your ski and mountain bike rental business mentioned in the previous question, is $22,000. Also assume that it is still a one year loan and the bank will charge 5% discount interest and require a 15% compensating balance, then determine the effective annual interest rate that the bank is charging Mountain Sports. Note: This is a Web Appendix 15B topic. 5.15% 5.75% 4.65% O 6.25% For this question, assume that the amount that you have to actually borrow for Mountain Sports, your ski and mountain bike rental business mentioned in the previous question, is $22,000. Also assume that it is still a one year loan and the bank will charge 5% discount interest and require a 15% compensating balance, then determine the effective annual interest rate that the bank is charging Mountain Sports. Note: This is a Web Appendix 15B topic. 5.15% 5.75% 4.65% O 6.25%

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