Question: Randall Corporation plans to borrow 233 000 for one year at

Randall Corporation plans to borrow $233,000 for one year at 20 percent from the Waco State Bank. There is a 21 percent compensating balance requirement. Randall Corporation keeps minimum transaction balances of $17,500 in the normal course of business. This idle cash counts toward meeting the compensating balance requirement. What is the effective rate of interest?


View Solution:


Sale on SolutionInn
Sales3
Views692
Comments
  • CreatedOctober 14, 2014
  • Files Included
Post your question
5000