Question
The treasurer of Brandon Blue Sox is seeking a $23,000 loan for 270 days from the Brandon Credit Union. The stated interest rate is 15
The treasurer of Brandon Blue Sox is seeking a $23,000 loan for 270 days from the Brandon Credit Union. The stated interest rate is 15 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $1,800 in the firms chequing account. These funds could count toward meeting any compensating balance requirements.
What is the annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)
| Answer 1Choose...18.23%16.5%17.08%17.52%17.45% |
What is the effective annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) | Answer 2Choose...18.23%16.5%17.08%17.52%17.45% |
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