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Hi, I need help with my Managerial Finance assignment please. . . Kenneth's Arrows and Bows borrow S10,000 for one year at 11 percent interest.
Hi, I need help with my Managerial Finance assignment please. . .
Kenneth's Arrows and Bows borrow S10,000 for one year at 11 percent interest. What is the effective rate of interest if the loan is discounted? (Use 360 days in a year) More than 12.6 percent, but less than 13.5 percert More than 11.5 percent, but less than 12.6 percent Less than 11.5 percent More than 13.5 percent Holland Construction Co. has an outstanding 180-day bank loan of $395,000 at an annual interest rate of 9.8%. The company is required to maintain a 18% compensating balance in its checking account. What is the effective interest rate on the loan? Assume the company would not normally maintain this average amount. (Use 360 days in a year. Round your answer to 2 decimal places.) 13.95% 10.95% 14.95% 1 1 .95%
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