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Nene Corporation received a 450,000 line of credit at an interest rate of 1%% from LandBank and drew down the entire amount. The line of
Nene Corporation received a 450,000 line of credit at an interest rate of 1%% from LandBank and drew down the entire amount. The line of credit agreement requires that an amount equal to 9% of the loan be deposited into a compensating balance account, what is the effective annual cost of credit for this loan arrangement.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
