Question
The Kellogg Bank requires borrowers to keep an 12 percent compensating balance. Gorman Jewels borrows $470,000 at a 4.0 percent stated APR. What is the
The Kellogg Bank requires borrowers to keep an 12 percent compensating balance. Gorman Jewels borrows $470,000 at a 4.0 percent stated APR. What is the effective interest rate on the loan? (Round intermediate calculations to 4 decimal places, e.g. 1.2541 and final answer to 2 decimal places, e.g. 12.25%.)
| The effective interest rate on the loan is % |
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Fundamentals Of Financial Institutions Management
Authors: Marcia Cornett, Anthony Saunders
1st Edition
0256253676, 9780256253672
