Question
On January 1, 2020, Bonita Industries borrows $2250000 from National Bank at 13% annual interest. In addition, Bonita is required to keep a compensatory balance
On January 1, 2020, Bonita Industries borrows $2250000 from National Bank at 13% annual interest. In addition, Bonita is required to keep a compensatory balance of $225000 on deposit at National Bank which will earn interest at 4%. The effective interest that Bonita pays on its $2250000 loan is:
| A. 13.5%. |
| B. | 13.0%. |
| C. | 14.0%. |
| D. | 8.0%. |
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Managerial Accounting
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
12th Canadian Edition
1260193276, 978-1260193275
