Question
Your company has agreed to a $400 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.47 percent per quarter
Your company has agreed to a $400 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.47 percent per quarter on any funds borrowed and maintain a 4 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on this line of credit?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Economic Indicator Handbook How To Evaluate Economic Trends To Maximize Profits And Minimize Losses
Authors: Richard Yamarone
1st Edition
1118204662, 9781118204665
