Question
Your company has agreed to a $350 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.42 percent per quarter
Your company has agreed to a $350 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.42 percent per quarter on any funds borrowed and maintain a 3 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on this line of credit?
- A. 5.98%
- B. 5.16%
- C. 5.89%
- D. 4.97%
- E. 5.80%
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30 Days To Taming Your Finances What To Do To Better Manage Your Money
Authors: Deborah Smith Pegues
1st Edition
0736918361, 978-0736918367
