Assume Lennys Lanes borrowed $14 million from Greenback Bank and agreed to (a) Pay an interest rate
Question:
(a) Pay an interest rate of 7.7%
(b) Maintain a compensating balance amount equal to 5.7% of the loan.
Determine Lenny’s Lanes actual effective interest rate on this loan.
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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