Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
You would like to borrow 57,463 dollars for 1 year, Interest compounds annually, but it is pre-paid. You are quoted an interest rate of 13%
You would like to borrow 57,463 dollars for 1 year, Interest compounds annually, but it is pre-paid. |
You are quoted an interest rate of 13% |
There is also a compensating balance of 4% associated with the loan. |
What is the effective interest rate of the loan to the nearest .1%(note if you calculate .065 or 6.5%, your answer should be "6.5" |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started