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Your company has agreed to a $500 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.57 percent per quarter
Your company has agreed to a $500 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.57 percent per quarter on any funds borrowed and maintain a 6 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on this line of credit? Multiple Choice 6.84% 5.72% 6.43% 5.51% 6.63%
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