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Frontier LLC acquires a $300,000, 8% loan from PNC Bank that is repayable in one year. PNC Bank requires that Frontier LLC keep a compensating
Frontier LLC acquires a $300,000, 8% loan from PNC Bank that is repayable in one year. PNC Bank requires that Frontier LLC keep a compensating balance of $60,000 in a checking account in order to acquire the loan. What is the effective interest rate that Frontier LLC will pay when considering the compensating balance? 15.0% 12.5% 10% 7.5%
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QuickBooks A Basic Guide To Learn The Principles Of Bookkeeping And Accounting For Beginners
Authors: Marcus Smalling
1st Edition
1655431773, 978-1655431777
