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You've worked out a line of credit arrangement that allows you to borrow up to $55 million at any time. The interest rate is 0.53
You've worked out a line of credit arrangement that allows you to borrow up to $55 million at any time. The interest rate is 0.53 percent per month. In addition, 5 percent of the amount you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans. Suppose you need $15 million today and you repay it in six months. How much interest will you pay?
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