Question
XYZ, Inc. borrowed $10,000 from National City Bank for four months. The loan was made at a simple interest rate of 8.5 percent but required
XYZ, Inc. borrowed $10,000 from National City Bank for four months. The loan was made at a simple interest rate of 8.5 percent but required a compensating balance of 20 percent. Find the effective annual interest rate for this loan.
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
1292267143, 978-1292267142
