Question
Funland has a $60000 line of credit with 1st bank. The line of credit called for an interest rate of 7 percent and a compensating
Funland has a $60000 line of credit with 1st bank. The line of credit called for an interest rate of 7 percent and a compensating balance of 5 percent.The compensating balance is based is based on the total amount borrowed and will be held in an interest- free account. what is the effect annual interest rate if the firm borrows $38000 for one year?
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
