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Provide EFFECTIVE interest rates Effective interest loan rate. Tribal Hat Company is arranging for a P500,000 one-year loan from People's Bank. The bank has offered

Provide EFFECTIVE interest rates

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Effective interest loan rate. Tribal Hat Company is arranging for a P500,000 one-year loan from People's Bank. The bank has offered Tribal Hat the following alternatives: a. A 30% interest rate loan, no required compensating balance. and principal plus interest due at the end of the year. b. A 19% interest rate loan, with 20% compensating balance. and principal plus interest due at the end of the year. c. A 21% interest rate loan, with 20% compensating balance, and principal plus interest due at the end of the year; the compensating balance carns an interest of 8% per annum. d. A 16% interest rate loan, with 15% compensating balance and the interest deducted from the principal at the time of loan release, i.c., discounted. Principal due at the end of the year. e. An 18% interest rate loan, with 15% compensating balance and the interest deducted from the principal at the time of loan release, i.e., discounted. Principal due at the end of the year; the compensating balance earns an interest of 9% per annum. f. An 18% discounted interest rate loan, with 15% compensating balance, principal due at the end of the year; the compensating balance earns an interest of 9% per annum. g. An 18% discounted interest rate loan, with 15% compensating balance, principal due at the end of the year; the compensating balance earns an interest of 9% per annum; the company currently maintains a compensating cash balance of P50,000

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