Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The treasurer for the Macon Blue Sox baseball team is seeking a $29,400 loan for one year from the 4th National Bank of Macon. The
The treasurer for the Macon Blue Sox baseball team is seeking a $29,400 loan for one year from the 4th National Bank of Macon. The stated interest rate is 20 percent, and there is a 21 percent compensating balance requirement. The treasurer always keeps a minimum of $1,960 in the baseball teams checking accounts. These funds count toward meeting any compensating balance requirements.
What will be the effective rate of interest on this loan? (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.) |
Effective rate of interest | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started