Question
Wonderful Lake Country Bank (WLCB) is willing to lend Mackenzie Micro-brewing Co. $100,000 for one year. WLCB requires a compensating balance of 15% and will
Wonderful Lake Country Bank (WLCB) is willing to lend Mackenzie Micro-brewing Co. $100,000 for one year. WLCB requires a compensating balance of 15% and will charge a stated interest rate of 11%. Mackenzie Micro-brewing Co. does not have any idle cash to meet the compensating balance requirement.
What is the effective annual rate of the WLCB loan?
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Of Synthetic Finance Three Essays Of Speculative Materialism
Authors: Benjamin Lozano
1st Edition
1138790842, 978-1138790841
