Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need answer for this The treasurer of Brandon Blue Sox is seeking a $28,000 loan for 180 days from the Brandon Crecdit Union. The

i need answer for this
image text in transcribed
The treasurer of Brandon Blue Sox is seeking a $28,000 loan for 180 days from the Brandon Crecdit Union. The stated interiest iste in 10 percent and there is a 15 percent compensating balance requirement. The treasurer always kneps a minimum of 52.300 in chequing account. These funds could count toward meeting any compensating balance requirements. What is the annual rate of interest on this loan? (Hint: If the interest rate is 10 percent per year and youre homowing then norey far kess than a year, then the interest cost is a portion of 10 percent times $28,000 ) (Use 365 doys in a year. Do not round intamimedias calculations. Round the final answer to 2 decimal pleces.) Annual rate of interest

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

9780470374948, 470423684, 470374942, 978-0470423684

More Books

Students also viewed these Accounting questions

Question

What are some of the traits that describe the high-energy trait?

Answered: 1 week ago